KENOSHA, Wis., Apr 19, 2012 (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 first quarter of 2012.
"We are pleased to begin 2012 with this encouraging first quarter performance, which we believe offers evidence that Snap-on's value proposition continues to resonate with our expanding customer base of serious professionals performing critical tasks," said Nick Pinchuk, Snap-on chairman and chief executive officer. "At the same time, we believe these results underscore our commitment to the Snap-on Value Creation Processes that define our path for improvement. We also believe this performance provides clear testimony to our further advancements along our defined runways for coherent growth: enhancing the franchise network, expanding in the vehicle repair garage, extending into critical industries, and building in emerging markets. The encouraging trend that is reinforced by this quarter's results once again reflects substantial energy and effort from the entire Snap-on team. In that regard, I thank our franchisees and associates worldwide for their significant contributions and for their ongoing dedication."
Commercial & Industrial Group segment sales of $286.5 million in the first quarter increased $14.1 million, or 5.2%, from 2011 levels; excluding $3.1 million of unfavorable foreign currency translation, organic sales increased 6.4%.
Operating earnings of $29.2 million in the period, including $3.3 million of higher year-over-year restructuring costs, compared with operating earnings of $31.6 million last year. As a percentage of sales, operating earnings of 10.2% in the quarter compared with 11.6% a year ago.
Snap-on Tools Group segment sales of $316.6 million in the first quarter rose $34.6 million, or 12.3%, from 2011 levels; excluding $0.4 million of unfavorable foreign currency translation, organic sales increased 12.4%. Operating earnings of $46.1 million in the period were up $9.0 million from 2011 levels. As a percentage of sales, operating earnings of 14.6% in the quarter compared with 13.2% a year ago. Restructuring costs in the quarter were $2.6 million lower than prior-year levels.
Repair Systems & Information Group segment sales of $226.1 million in the first quarter decreased $0.9 million, or 0.4%, from 2011 levels; excluding $3.1 million of unfavorable foreign currency translation, organic sales rose 1.0%.
Operating earnings of $48.6 million in the period increased $5.8 million from 2011 levels. As a percentage of sales, operating earnings of 21.5% in the quarter compared with 18.9% a year ago.
Financial Services operating earnings were $23.9 million on $38.0 million of revenue in the first quarter of 2012, as compared to operating earnings of $12.5 million on $25.8 million of revenue a year ago, reflecting continued growth of the on-book finance portfolio.
Corporate expenses of $26.4 million in the first quarter of 2012 increased $2.2 million from 2011 levels.
In 2012, Snap-on expects to continue with its planned strategic investments to enhance its mobile tool distribution network, expand in the vehicle repair garage, extend to critical industries and build in emerging markets. In pursuit of these initiatives, Snap-on anticipates that capital expenditures in 2012 will be in a range of $60 million to $70 million, of which $21.8 million was spent in the first quarter. Restructuring expenses in the second quarter of 2012 are expected to approximate $8 million, including the settlement of a pension plan related to the 2011 closure of the company's Newmarket, Canada, facility. Snap-on also anticipates that its full year 2012 effective income tax rate will approximate 33.5%.
Conference Call and Webcast April 19, 2012, at 10:30 a.m. Central Time
A discussion of this release will be webcast on Thursday, April 19, 2012, at 10:30 a.m. Central Time, and a replay will be available for at least 10 days following the call. To access the webcast, visit 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 for customers in industries, including aviation, aerospace, agriculture, construction, government and military, mining, natural resources and power generation. Products and services are sold through the company's franchisee, company-direct, distributor and internet channels. Founded in 1920, Snap-on is a $2.9 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 December 31, 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 www.snapon.com.
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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.