2012 got off to a good start for Snap-on Inc., as the Kenosha, WI-based toolmaker saw its net income increase 6 percent to $735.20 million and its net earnings rise 26.3 percent to $71 million. Excluding some $6.70 million in unfavorable currency translation, organic sales were up 7 percent.
The Snap-on Tools Group saw its sales rise 12.3 percent to $316.60 million (organic sales up 12.4 percent) as its franchisee network, because of productivity increases, is now able to call on a wider range of customers. “Overall, the network is strong, and it’s evident in the trends we track,” said Chairman and CEO Nick Pinchuk on an April 19 call with members of the financial community. “Franchisee sales and profits continue to rise, credit delinquencies remain at historically low rates, and our turnovers are down.
“To look beyond the franchisees, we see solid indicators on the health of our end customers, the repair technicians. Activity with big-ticket items like hand-held diagnostics and tool storage remain at solid levels, as you would expect given the growth rates we’ve been recording for several quarters now.”
Operating earnings for the Tools Group increased 24.3 percent to $46.10 million on a year-over-year basis. Repair Systems & Information Group operating earnings rose 13.6 percent to $48.60 million. However, sales were down 0.4 percent to $226.10 million (organic sales up 1 percent) due, in part, to the group’s exposure to weak markets in Europe.