Snap-on boosts revenue, profit in Q2

Tools group faces some currency headwinds

Kenosha-based Snap-on Inc. increased its revenue and profit during the second quarter, despite some headwinds for its tools group.

The company reported net income of $153.2 million, an increase of 9.4 percent. Earnings increased from $2.36 to $2.60 per diluted share during the quarter.

Revenue was up 5.6 percent to $921.4 million, including a 2.7 percent organic sales increase.

Nick Pinchuk, Snap-on chairman and chief executive officer, said the results “confirm our success in serving serious professionals performing critical tasks.”

“These results also demonstrate continued advancement along our strategic runways for growth, as indicated by the notable increase in activity in the quarter,” Pinchuk said. “Despite some sales headwinds in the quarter for the Snap-on Tools Group, we believe the vehicle repair markets in which we operate remain robust and afford significant ongoing opportunity.”

The tools group saw revenue decline $2.9 million to $413.8 million in the quarter. Sales were up organically by 0.5 percent, but unfavorable currency translation cut into revenue by $5 million.

Snap-on’s commercial and industrial group saw sales increase 8.5 percent to $310 million, including a 4.7 percent organic increase driven by the European hand tools business and higher sales to critical industries.

The repair systems and information group boosted sales by 14.5 percent to $338.1 million, including an 8.3 percent organic increase. The jump was boosted by higher sales of diagnostics and repair information products to independent repair shop owners and increased sales to OEM dealerships.

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Arthur covers banking and finance and the economy at BizTimes while also leading special projects as an associate editor. He also spent five years covering manufacturing at 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.

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