Snap-on boosts revenue across the board in Q1

Earnings improve more than 10%

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.

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“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.

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Arthur Thomas
Arthur covers manufacturing for BizTimes. He previously was managing editor at The Waukesha Freeman. He is a graduate of Carroll University and did graduate coursework at Marquette. A native of southeastern Wisconsin, he is also a nationally certified gymnastics judge and enjoys golf on the weekends.