KENOSHA, Wis. — Snap-on Inc. announced operating results for the second quarter of 2010.

"Our second quarter results provide further testament to the benefits we continue to realize through our unwavering commitment to the Snap-on Value Creation Processes," said Nick Pinchuk, Snap-on chairman and CEO. "We're encouraged by the higher sales and operating margins on both a year-over-year and sequential basis, particularly since the shape of the global economic recovery is still not yet fully evident."

Highlights of the results include:

• Sales of $647.6 million increased $57.6 million, or 9.8 percent, from 2009 levels, including $0.9 million of favorable foreign currency translation.

• Gross profit of $303.8 million improved to 46.9 percent of sales compared with 43.1 percent a year ago.

• Operating earnings before financial services of $79.0 million increased $25.3 million, or 47.1 percent, from prior-year levels and, as a percentage of sales, improved to 12.2 percent compared with 9.1 percent a year ago.

• Financial services operating earnings of $1.7 million in the quarter improved from a loss of $1.7 million in the first quarter of 2010. Financial services operating earnings were $16.6 million in the second quarter of 2009. The expected year-over-year decline resulted from the July 16, 2009 termination of the financial services joint venture with CIT Group Inc.

• The effective income tax rate in the second quarter was 31.2 percent in 2010 compared with 31.9 percent in 2009.

• Net earnings of $45.3 million, or $0.78 per diluted share, increased from $37.4 million, or $0.65 per diluted share, a year ago despite $11.0 million, or $0.19 per diluted share, of lower financial services net earnings.