Last updated on July 7th, 2019 at 02:19 pm
Kenosha-based Snap-on Inc. reported revenue gains in all its business segments and improved earnings by more than 10 percent during the first quarter.
“It was an encouraging quarter, achieved against headwinds and variation,” said Nick Pinchuk, Snap-on chairman and chief executive officer.
The maker of tools, diagnostic and repair equipment reported net income of $141.6 million, an increase of 10.4 percent. Earnings increased from $2.16 to $2.39 per diluted share.
Revenue was up 6.3 percent, to $887.1 million. The increase was driven by a $33.4 million, or 4.1 percent, increase in organic sales and a $29.1 million, or 3.5 percent, increase from acquisitions. Foreign currency translation drove revenue down by 1.3 percent or $9.6 million.
The company’s tools segment reported revenue of $409.4 million, a 1.7 percent increase. Sales were up organically by $10.1 million, or 2.5 percent, with increases in U.S. and international franchise operations.
The repair systems and information segment increased sales by 14.3 percent, to $318.8 million. Increased sales of undercar equipment, diagnostic and repair information products to independent repair shops and OEM dealerships helped boost organic sales by 7.8 percent, or $21.6 million.
The commercial and industrial segment increased sales 4.1 percent, to $298.7 million. Sales were up 3 percent, or $8.6 million, organically, largely due to increases in the European-based hand tools business and higher sales to customers in critical industries. Acquisitions contributed a 2.8 percent increase, while foreign currency translation was a 1.7 percent headwind.
“Overall, I’d describe our markets as improving,” Pinchuk said.