) announced fourth-quarter 2012 results before the market opened
today, reporting earnings per share of $1.43, above the Zacks
Consensus Estimate of $1.37 and the prior-year quarter's earnings
Earnings per share for full year 2012 are $5.20, above the
Zacks Consensus Estimate of $5.14 and the prior year quarter
earnings of $4.52. The company's good results show its strength
in its sector.
Total revenue in the quarter increased by 2.3% year over year
to $753.2 million. Organically the sales increased by 2.5%. For
full year 2012, total revenue was $2.94 billion, up 2.9% year
Commercial & Industrial Group segment
sales of $275.6 million in the quarter, down 6.7% year over year.
Decline in revenue from military as well as from European-based
hand tools business accounted for the decrease in sales.
Snap-on Tools Group segment
sales were $321.6 million, up 9.8% led by SNA's U.S. and
international franchise operations.
Repair Systems & Information Group segment
sales were $241.6 million in the quarter, up 2.2%.
Operating earnings for the quarter were $140.7 million
compared with $125.9 million in the prior-year quarter. Operating
expenses were $240.6 million compared with $232.0 million.
Cash and Cash equivalents were $214.5 million at the end of
the quarter with long-term debt of $970.4 million and
shareholders equity of $1.82 billion compared with $185.6
million, $967.9 million and $1.55 billion, respectively.
Snap-on expects to incur capital expenditures of $70 million
to $80 million in 2013. The company noted that it will continue
its focus on emerging markets, expand its presence in new
industries, enhance its mobile tool distribution network and
expand in the vehicle repair garage.
The biggest advantage of Snap-on is its ability to innovate
and it has been doing so over the last 90 years. Snap-On has
invested in new products and increased brand awareness. The
company has managed to create product excitement and real
customer value through a combination of innovation and customer
However, the European financial crisis, uncertainty about the
U.S. fiscal cliff on January 1, 2013, and the slowing
Chinese economy, collectively contribute to a tenuous global
business environment. These macro conditions provide limited
visibility into the company's future performance.
Snap-on Incorporated is a global provider of professional
tools, equipment, and related solutions for technicians, vehicle
service centers, original equipment manufacturers (OEMs), and
other industrial users. Products include a broad range of
professional hand and power tools; tool storage; vehicle
diagnostics and service equipment; business management systems;
equipment repair services; and other tool and equipment
Snap-on currently has a Zacks #3 Rank (Hold). Its close rivals
Clean Energy Fuels Inc.
) all have a Zacks Rank #2 (Buy).
CLEAN EGY FUELS (CLNE): Free Stock Analysis
INTERDIGITL INC (IDCC): Free Stock Analysis
JUNIPER NETWRKS (JNPR): Free Stock Analysis
SNAP-ON INC (SNA): Free Stock Analysis Report
To read this article on Zacks.com click here.