Snap-on Inc ( SNA ) reported first
quarter 2013 results before the market opened today with earnings
per share of $1.40, 4.5% higher than the Zacks Consensus Estimate
of $1.34 and 15.7% above the prior-year quarter's earnings of
$1.21.ALAMO GROUP INC (ALG): Free Stock Analysis
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Despite continued headwinds affecting the company's business,
management's focus on enhancing van network, building on repair
shop owners and managers, extending to critical industries and
expanding in emerging markets has paid well.
Total revenue in the quarter inched up 0.9% year over year to
$741.7 million. Organically, sales increased 1.5%. The company
reported revenue growth in three of its four operating segments.
Revenue growth in the Snap-On Tools, Repairs Systems &
Information Group and Financial services was partially offset by
lower revenues in the Commercial & Industrial Group.
Commercial & Industrial Group segment sales declined 7% year
over year to $266.4 million, due to lower sales to the military and
soft European hand tools business as a result of ongoing economic
weakness in that region. Organic sales of the segment also declined
6.3% year over year.
Snap-on Tools Group segment sales grew 3.4% year over year to
$10.7 million, driven by sales gains across both the company's U.S.
and international franchise operations. Organic sales of the
segment grew 3.7%.
Repair Systems & Information sales grew 8.8% to $246.1
million, attributable 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 grew 9.3% year over year.
Financial Services reported operating earnings of $30.5 million on
revenues of $44.0 million in the quarter compared with operating
earnings of $23.9 million on revenues of $38.0 million a year
Income and Expenses
Operating earnings for the quarter were $138.3 million compared
with $121.4 million in the prior-year quarter. Operating expenses
were $249.1 million compared with $250.2 million.
Cash and cash equivalents were $213.6 million at the end of the
quarter with long-term debt of $868.0 million and shareholders'
equity of $1.84 billion compared with $214.5 million, $970.4
million and $1.82 billion, respectively.
Concurrent with the earnings release, Snap-On reiterated its
outlook for 2013. Snap-On expects to incur capital expenditures of
$70 million to $80 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.
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 solutions.
Snap-On currently has a Zacks #3 Rank (Hold). Other players
operating in the same industry such as CNH Global
NV ( CNH )
and Alamo Group Inc. ( ALG ) are good options
at the moment with a Zacks Rank #2 (Buy). Another company,
Deere & Company ( DE ), operating in the
same industry, has a Zacks Rank #4 (Sell).