KENOSHA, Wis. – Snap-on has announced operating results for the third quarter of 2011.
The company reported sales of $697.2 million, an increase of $44.1 million or 6.8 percent from 2010 levels; excluding $19.6 million of favorable foreign currency translation, organic sales increased 3.6 percent.
Snap-on reported operating earnings of $115.1 million, an increase of $31.3 million or 37.4 percent from 2010 levels, including $15.8 million of higher year-over-year earnings from financial services and $7.1 million of lower corporate expenses, largely due to favorable mark-to-market adjustments in the quarter.
Net earnings were $67.8 million, or $1.16 per diluted share, compared with net earnings of $46.5 million, or 80 cents per diluted share, a year ago.
“We are pleased with our results for the third quarter, which we believe provide further evidence of the progress being made along each of our runways for coherent growth: enhancing the franchise network, expanding in the vehicle repair garage, extending to critical industries and building in emerging markets,” said Nick Pinchuk, Snap-on chairman and CEO.
Snap-on said it continues to anticipate that capital expenditures in 2011 will approximate $65 million, of which $46.6 million was spent in the first nine months of 2011. The company also expects to incur approximately $13 million of higher year-over-year pension expense in 2011 largely due to the amortization of investment losses incurred in 2008 related to the company’s domestic pension plan assets. Snap-on now anticipates that its full year 2011 effective income tax rate will approximate 33 percent.
