The third quarter of 2012 was a solid one for Snap-on Inc. The Kenosha, WI-based tool, equipment and diagnostics company saw its net income increase 9.3 percent to $74.10 million as net sales rose 2.1 percent to $711.60 million. Excluding roughly $16.60 million in unfavorable foreign currency translation, organic sales were up 4.6 percent.
Sales from the Snap-on Tools Group rose 10.4 percent to $308.80 million in the third quarter of 2012, reflecting double-digit sales increases in both the U.S. and international franchise operations. If you exclude $1.60 million in unfavorable foreign currency translation, the group’s organic sales were up 11.1 percent.
Tool storage product sales were especially strong — up substantially more than the aforementioned 11.1-percent increase, according to comments Snap-on management made on a recent conference call.
Snap-on Tools Group operating earnings increased 12.9 percent to $40.20 million. “That kind of growth in the current environment clearly reflects the strength of our franchise network,” said Nick Pinchuk, chairman, president and CEO.
Repair Systems & Information Group sales fell 0.3 percent to $222 million in the quarter. However, excluding $6.50 million from currency translation, the group’s organic sales rose 2.7 percent. The segment recorded a high single-digit increase in the sale of diagnostics and Mitchell 1 repair information products, as well as a mid single-digit rise in equipment sales worldwide. These increases were partially offset by a mid single-digit decline in sales to OEM dealerships, particularly in Europe.
Operating earnings for the Repair Systems & Information Group increased 13.3 percent to $49.50 million.
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