Diluted EPS of $1.16;
Operating earnings of $115.1 million up 37.4%;
Sales of $697.2 million up 6.8%
KENOSHA, Wis., Oct 20, 2011 (BUSINESS WIRE) -- Snap-on Incorporated (NYSE: SNA), a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks, today announced operating results for the third quarter of 2011.
"We are pleased with our results for the third quarter, which we believe provide further evidence of the progress being made along each of our runways for coherent growth: enhancing the franchise network, expanding in the vehicle repair garage, extending to critical industries and building in emerging markets," said Nick Pinchuk, Snap-on chairman and chief executive officer. "As testimony to our success in creating positive runway, and to the effectiveness of our Snap-on Value Creation processes, we are honored to have been recognized by Frost & Sullivan's 2011 survey of U.S. automotive technicians as the overall best brand, by wide margins, in hand tools, diagnostics, tool storage, power tools and pneumatic/air tools. This overwhelming endorsement reflects our continuing progress in connecting with customers and translating the resulting insight into winning innovation. Finally, our third quarter reflects significant effort and achievement across the company and I thank our franchisees and associates worldwide for their continued contributions and commitment to our team."
Commercial & Industrial Group segment sales of $278.3 million in the third quarter increased $17.3 million, or 6.6%, from 2010 levels; excluding $10.2 million of favorable foreign currency translation, organic sales were up 2.6%.
Operating earnings of $29.6 million in the period compared with $30.6 million last year. As a percentage of sales, operating earnings of 10.6% in the third quarter compared with 11.7% a year ago.
Snap-on Tools Group segment sales of $279.6 million in the third quarter rose $20.9 million, or 8.1%, from 2010 levels; excluding $5.0 million of favorable foreign currency translation, organic sales for the Group increased 6.0%.
Operating earnings of $35.6 million in the period were up $7.4 million from 2010 levels. As a percentage of sales, operating earnings of 12.7% in the third quarter increased from 10.9% a year ago.
Repair Systems & Information Group segment sales of $222.6 million in the third quarter increased $15.2 million, or 7.3%, from 2010 levels; excluding $5.2 million of favorable foreign currency translation, organic sales rose 4.7%.
Operating earnings of $43.7 million in the period increased $2.0 million from 2010 levels. As a percentage of sales, operating earnings of 19.6% in the third quarter compared with 20.1% a year ago.
Financial Services operating earnings were $20.8 million on $32.7 million of revenue in the third quarter of 2011, as compared to operating earnings of $5.0 million on $17.2 million of revenue in the third quarter of 2010. The year-over-year increase in both revenues and operating earnings primarily reflects the continued growth of the on-book finance portfolio.
Corporate expenses of $14.6 million in the third quarter of 2011 decreased $7.1 million from prior-year levels. In the quarter, the change in the company's stock price resulted in $7.8 million of benefits related to stock-based (mark-to-market) compensation. Corporate expenses also included $3.1 million of expected higher year-over-year pension expense.
Snap-on continues to anticipate that capital expenditures in 2011 will approximate $65 million, of which $46.6 million was spent in the first nine months of 2011. We also expect to incur approximately $13 million of higher year-over-year pension expense in 2011 largely due to the amortization of investment losses incurred in 2008 related to our domestic pension plan assets. Snap-on now anticipates that its full year 2011 effective income tax rate will approximate 33.0%.
Conference Call and Webcast October 20, 2011, at 9:00 a.m. Central Time
A discussion of this release will be webcast on Thursday, October 20, 2011, at 9:00 a.m. Central Time, and a replay will be available for at least 10 days following the call. To access the webcast, visit http://www.snapon.com/sna and click on the link toward the bottom of the page. Additional detail about Snap-on is also available on the Snap-on web site.
Snap-on Incorporated is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks. Products and services include hand and power tools, tool storage, diagnostics software, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as customers in industry, government, agriculture, aviation and natural resources. Products and services are sold through the company's franchisee, company-direct, distributor and Internet channels. Founded in 1920, Snap-on is a $2.6 billion, S&P 500 company headquartered in Kenosha, Wisconsin.
Statements in this news release that are not historical facts, including statements that (i) are in the future tense; (ii) include the words "expects," "anticipates," "intends," "approximates," or similar words that reference Snap-on or its management; (iii) are specifically identified as forward-looking; or (iv) describe Snap-on's or management's future outlook, plans, estimates, objectives or goals, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.Snap-on cautions the reader that this news release contains statements, including earnings projections, that are forward-looking in nature and were developed by management in good faith and, accordingly, are subject to risks and uncertainties regarding Snap-on's expected results that could cause (and in some cases have caused) actual results to differ materially from those described or contemplated in any forward-looking statement. Factors that may cause the company's actual results to differ materially from those contained in the forward-looking statements include those found in the company's reports filed with the Securities and Exchange Commission, including the information under the "Safe Harbor" and "Risk Factors" headings in its Annual Report on Form 10-K for the fiscal year ended January 1, 2011, which are incorporated herein by reference.Snap-on disclaims any responsibility to update any forward-looking statement provided in this news release, except as required by law.
For additional information, please visit http://www.snapon.com.
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Snap-on is providing the above reconciliations of non-GAAP financial measures (excluding the $18.0 million pretax arbitration settlement gain recorded in the second quarter of 2011) as management believes that these non-GAAP measures provide a more meaningful year-over-year comparison of the company's 2011 operating performance.
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SOURCE: Snap-on Incorporated
Snap-on Incorporated is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks.