KENOSHA, Wis. – Snap-on Inc. has announced operating results for the third quarter of 2013.
Sales of $753.2 million increased $41.6 million, or 5.8 percent, from 2012 levels; excluding $15.6 million of sales from the May 2013 acquisition of Challenger Lifts Inc. and $7.3 million of unfavorable foreign currency translation, organic sales increased 4.7 percent.
The company also reported operating earnings before financial services of $111.3 million, or 14.8 percent of sales, compared with $96.2 million, or 13.5 percent of sales, last year.
Financial services operating earnings of $31.6 million increased $3.7 million from 2012 levels. Consolidated operating earnings of $142.9 million, or 17.9 percent of revenues (net sales plus financial services revenue), increased from $124.1 million, or 16.5 percent of revenues, last year.
Snap-on reported net earnings of $84.6 million, or $1.43 per diluted share, compared with net earnings of $74.1 million, or $1.26 per diluted share, a year ago.
“We’re encouraged by our third quarter results, which reflect a 5.8 percent increase in net sales and a 130 basis point improvement in operating margin before financial services. We believe these results demonstrate our continued progress along our defined runways for coherent growth and underscore the benefits of our Snap-on Value Creation processes of safety, quality, customer connection, innovation and rapid continuous improvement,” said Nick Pinchuk, Snap-on chairman and CEO.
Outlook
Snap-on said it expects to continue with the advancement of its strategic framework designed to enhance its mobile tool distribution network, expand in the vehicle repair garage, extend to critical industries and build in emerging markets. In pursuit of these initiatives, Snap-on anticipates that capital expenditures in 2013 will approximate $75 million. Snap-on also expects that its full year 2013 effective income tax rate will be comparable to its 2012 rate.
