Organic sales drive higher Snap-on earnings

Kenosha-based Snap-on Inc. today reported second quarter net earnings of $108.8 million, or $1.80 per share, up from $90.7 million, or $1.50 per share, in the second quarter of 2013.

Net sales were $826.5 million, up from $764.1 million in the same period a year ago.

Snap-on, which manufactures and markets tools, equipment, diagnostics, repair information and systems solutions for professional users, attributed the sales increase to 6.6 percent growth in organic sales, $10.5 million in acquisition-related sales and $1.4 million in favorable foreign currency translation.

Sales were up 13.1 percent in the repair systems and information group, 7.9 percent in the commercial and industrial group and 6.6 percent in the tools group.

“Our second quarter results include broad-based organic sales growth, which we believe affirms Snap-on’s unique capabilities in providing repeatability and reliability to a wide range of professional customers performing critical tasks in workplaces of consequence,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “At the same time, we remain committed to realizing ongoing benefits from our Snap-on value creation processes, as evidenced by this quarter’s 130 basis point improvement in operating margin before financial services and 20 percent growth in earnings per share. Finally, this continued progress along our defined runways for coherent growth and operating improvement would not be possible without the capability and commitment so evident across Snap-on, and I thank our franchisees and associates worldwide for their significant contributions and extraordinary efforts.”

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