KENOSHA, Wis. — Snap-on has announced results for the second quarter of 2004. The company reported diluted earnings per share were 38 cents, the same as they were a year ago.

Operating earnings were $40.8 million compared with $40.7 million a year ago. Second-quarter 2004 operating earnings include $5.7 million of costs for continuous improvement and related actions and a previously disclosed charge of $3.6 million associated with two U.S. General Services Administration (GSA) contracts. In the year-ago period, Snap-on had costs for continuous improvement actions of $3 million.

Net sales increased to $591.3 million compared with $565.2 million in the prior year, up $26.1 million. Of the improvement, $15.5 million was due to currency translation, and $10.6 million was from organic sales growth.

Cash flow from operating activities was $57.8 million in the quarter compared with $37 million for the year-ago period. After financing and investing activities, including $10 million for capital expenditures and returning $34.3 million to shareholders through share repurchases and dividends, cash increased $19 million in the second quarter.

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