Snap-on Sales Up 7.1% in Q1

The company expects ongoing, if “uncertain,” progress amid economic and political turbulence.

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Tools and equipment maker Snap-on Inc. on Thursday reported net sales of nearly $1.1 billion in its latest fiscal quarter, a 7.1% increase over the same period in 2021.

The Wisconsin manufacturer said the totals reflected an 8% gain in organic sales. Operating earnings before financial services accounted for 20.3% of sales, up from 19.6% in the previous first quarter, while consolidated operating earnings jumped from $266.3 million in the previous first quarter to $293.5 million in the latest window.

Net earnings climbed from $192.6 million or $3.50 per diluted share to $217.4 million or $4 per diluted share over that span.

“Our first quarter results are once again encouraging, demonstrating our upward trajectory in sales, profitability and earnings, and overcoming the varying difficulties faced in the current macroeconomic and geopolitical environments,” Snap-on Chairman and CEO Nick Pinchuk said in a statement. “Throughout the turbulence of the past two years, we believe our markets have remained resilient and our strategic position has strengthened.”

The company said although COVID-19 and its supply chain implications would likely continue to impact the global economic climate, officials expect “ongoing advancement even in the midst of the turbulence.”

“The trajectory, however, may be uncertain due to the evolving nature of the situation,” officials said.

Snap-on expects to spend between $90 million and $100 million on capital expenditures this year; the company spent more than $20 million in the first quarter.

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