Snap-on Sales & Profit Climb Higher In Q2

Snap-on continues to grow sales and profit by solid margins during tough economic conditions, with its tools group posting year-over-year organic sales growth of 5.8 percent.

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Kenosha, WI-based tool maker Snap-on reported its 2016 Q1 fiscal performance on Thursday, led by further year-over-year gains in both sales and profit.

Snap-on posted Q2 total sales of $872.3 million, up 2.4 percent from last year. Excluding a negative $10.2 million impact from currency headwinds and a negative $5.9 million impact from acquisition-related sales, organic sales increased 2.9 percent year-over-year. Sequentially, total sales were up 4.6 percent from Q1.

Operating profit of $215.9 million increased 12.3 percent from a year earlier, while net profit of $140.1 million increased 16.8 percent. Sequentially, net profit was up 9.2 percent from Q1.

"This performance demonstrates further progress along our defined runways for coherent growth and ongoing strength in automotive repair while overcoming continuing headwinds in certain challenging end markets and geographies," said Nick Pinchuk, Snap-on chairman and CEO.

Snap-on's Tools group Q2 sales of $416.7 million rose 4.5 percent year-over-year, while organic sales rose 5.8 percent. Operating margin improved 120 base points from a year earlier.

Snap-on's Commercial & Industrial group Q2 sales of $285.7 million decreased 3.4 percent year-over-year, while organic sales decreased 2.0 percent. The company said the declines were due to lower sales to customers in critical industries were partially offset by gains in the segment’s Asia/Pacific and power tools operations, as well as higher sales from the segment’s European-based hand tools business. Operating margin declined 50 base points from a year earlier.

Snap-on's Repair Systems & Information group Q2 sales of $295.2 million rose 6.4 percent year-over-year, while organic sales rose 5.2 percent. The company said the gains were due to higher sales of diagnostic and repair information products to independent repair shop owners and managers, increased sales of undercar equipment and higher sales to OEM dealerships. Operating margin improved 80 base points from a year earlier.

 

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