Industrial goods manufacturer
) reported stellar third quarter 2013 results with a healthy
growth in net sales and earnings. Net income for the reported
quarter increased to $84.6 million or $1.43 per share from $74.1
million or $1.26 per share in the year-earlier quarter. The
reported earnings also exceeded the Zacks Consensus Estimate by 3
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SNAP-ON INC (SNA): Free Stock Analysis Report
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Despite continued macroeconomic headwinds, management's focus on
enhancing van network, building on repair shop owners and
managers, extending service to critical industries, strategic
acquisitions and expanding in emerging markets continued to
favorably benefit the company.
Net sales of the company were up 5.8% year over year to $753.2
million. Total revenue in the reported quarter increased to
$798.3 million from $752.1 million in the year-ago quarter.
Excluding inorganic revenue of $15.6 million from the May 2013
acquisition of Challenger Lifts, Inc. and adverse foreign
currency translation effects, organic sales increased 4.7% year
The company reported revenue growth in three of its four
operating segments. Higher revenues in the Snap-On Tools, Repairs
Systems & Information Group and Financial services were
partially offset by lower revenues in the Commercial &
Industrial Group. Total revenue was also above the Zacks
Consensus Estimate of $745 million.
Commercial & Industrial Group
segment sales declined 1.9% year over year to $275.2 million due
to lower sales to the military and soft European hand tools
business, which in turn was a result of ongoing economic weakness
in the region. Organic sales also declined 0.9% year over year.
Snap-on Tools Group
segment sales increased 8.1% year over year to $333.8 million,
driven by sales gains in both U.S. and international franchise
operations. Organic sales were up 9.5%.
Repair Systems & Information
segment sales increased 13.8% to $252.7 million, primarily due to
higher sales to Original Equipment Manufacturer (OEM) dealerships
and gains in sales of diagnostics and repair information products
to repair shop owners and managers. Organic sales were up 6.7%
year over year.
s reported revenues of $45.1 million compared with $40.5 million
in the year-ago quarter. Operating earnings for the segment were
$31.6 million compared with $27.9 million in the prior-year
Snap-on registered consolidated operating earnings of $142.9
million or 17.9% of total revenue during the reported quarter
compared with $124.1 million or 16.5% of total revenue in the
Balance Sheet & Cash Flow
Cash and cash equivalents at quarter-end were $182.5 million with
long-term debt of $861.1 million. Net cash provided by operating
activities comprehensively increased to $84.3 million during the
quarter from $69.7 million in the prior-year period.
Concurrent with the earnings release, Snap-On reiterated its
outlook for 2013. Snap-On expects to incur capital expenditures
of $75 million in 2013. The company noted that it will continue
to focus on emerging markets, expand its presence in new
industries, enhance its mobile tool distribution network and
expand in the vehicle repair garage market.
Snap-on currently has a Zacks Rank #3 (Hold). Other companies in
the industry worth considering at the moment include
Empresas ICA, S.A.B. de C.V.
Great Lakes Dredge & Dock Corporation
Core Laboratories NV
), each carrying a Zacks Rank #2 (Buy).