Kenosha-based tool manufacturer Snap-on on Thursday reported an increase in sales and earnings per share in its first quarter compared to last year.
The company saw $1.2 billion in net sales in the first quarter, up 5.8% from the same period last year. The rise consists of a $39.2 million organic gain and $26.9 million in foreign currency exchange profits.
Earnings per share (EPS) was also up $0.18 from the same period last year. The first quarter showed an increase to $247 million, or $4.69 per diluted share, up from $240 million, or $4.51 per diluted share for the first quarter of last year.
The company attributes its rise in earnings to steady overall growth from each sector – Commercial & Industrial Group, Tools Group, Repair Systems & Information Group, Financial Services – all of which reported a rise in net sales in the first quarter.
“Our first quarter was encouraging, led by robust sales growth with customers in critical industries and improved activity in the U.S. Tools Group, both demonstrating our considerable momentum despite the ongoing and ever-evolving turbulence,” said Nick Pinchuk, Snap-on chairman and chief executive officer.
Pinchuk noted the company is expecting some tumult ahead including uncertainty among Snap-on’s technician customer base in the U.S., international supply chain disruptions, and several global conflicts. But the company is “confident in the strength, resilience and criticality of (its) markets,” he said, and will continue to focus on the production of products serving vehicle technicians.
Snap-on said it will focus on business in the automotive repair sector, expanding operations to new geographies and industries where penalties for failure are high. The company estimates spending $100 million in its automotive repair initiatives. The company has already invested $21 million in the first three months of the year.
The company is also seeing increased demand for products that support construction in the data center industry, Pinchuk said.
Wall Street responded favorably to the earnings report as shares of Snap-on stock were up $9.66 Thursday afternoon to $392.04.
