KENOSHA, Wis. – Snap-on has announced operating results for the second quarter of 2012.
The company reported sales of $737.9 million, an increase of $11.2 million, or 1.5 percent, from 2011 levels. Excluding $20.8 million of unfavorable foreign currency translation, organic sales increased 4.5 percent.
Second quarter 2012 revenues (net sales plus financial services revenue) were $777.8 million.
Consolidated operating earnings of $130.2 million increased $13.9 million from comparable prior-year levels and improved to 16.7 percent of revenues as compared to 15.4 percent last year.
Snap-on reported net earnings of $76.4 million, or $1.30 per diluted share, compared with second quarter 2011 net earnings of $66.9 million, or $1.14 per diluted share.
“We’re encouraged by our second quarter 2012 results, which we believe validate the strength of Snap-on’s ability to serve ‘the serious’ professionals performing critical tasks where the costs and penalties for failure can be high,” said Nick Pinchuk, Snap-on chairman and CEO. “We believe the organic sales increase, achieved despite uncertainties surrounding the global macroeconomic environment, particularly in Europe, illustrates ongoing advancements along our defined runways for coherent growth: enhancing the franchise network, expanding in the vehicle repair garage, extending into critical industries, and building in emerging markets. At the same time, we believe the continuing operating margin improvements are a clear reflection of our Snap-on Value Creation Processes and their positive contributions to our enterprise. Finally, I note that the second quarter results and our favorable trends are due to the dedication and efforts of our franchisees and associates worldwide; I thank them for their ongoing support and commitment.”
Snap-on says it expects to continue with its planned strategic investments to enhance its mobile tool distribution network, expand in the vehicle repair garage, extend to critical industries and build in emerging markets. As a result of these initiatives, the company now anticipates that capital expenditures in 2012 will be in a range of $70 million to $80 million, of which $39.8 million was spent in the first six months of 2012. Snap-on also anticipates that its full year 2012 effective income tax rate will approximate 33.5 percent.
