KENOSHA, WI — Snap-on Incorporated, an innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks, announced operating results for the third quarter of 2018.
- Net sales of $898.1 million were down $5.7 million, or 0.6 percent, from 2017 levels, reflecting a $5.4 million, or 0.6 percent, organic sales gain, $1.4 million of acquisition-related sales and $12.5 million of unfavorable foreign currency translation.
- Operating earnings before financial services for the quarter were $173.1 million or 19.3 percent of sales. This compared to $152.7 million, or 16.9 percent of sales, in the third quarter of 2017. The 2017 operating earnings before financial services included a $15.0 million legal charge (the “legal charge”); excluding the legal charge, operating earnings before financial services, as adjusted, in the third quarter of 2017 were $167.7 million, or 18.6 percent of sales.
- Financial services revenue of $82.0 million in the third quarter of 2018 increased $3.0 million from 2017 levels; financial services operating earnings of $59.3 million increased $3.3 million from $56.0 million last year.
- Consolidated operating earnings totaled $232.4 million, or 23.7 percent of revenues (net sales plus financial services revenue), which compared to $208.7 million, or 21.2 percent of revenues, in the third quarter of 2017. Excluding the legal charge, consolidated operating earnings, as adjusted, in the third quarter of 2017 was $223.7 million, or 22.8 percent of revenues.
- The third quarter 2018 effective income tax rate of 24.0 percent included a charge of 90 basis points, or $1.8 million, related to newly issued guidance associated with U.S. tax legislation (the “tax charge”). Excluding the tax charge, the effective tax rate, as adjusted, was 23.1 percent. The third quarter 2017 effective income tax rate was 30.1 percent and was reduced by 60 bps as a result of the legal charge.
- Reported net earnings in the third quarter of 2018 were $163.2 million, or $2.85 per diluted share, compared to reported net earnings of $133.4 million, or $2.29 per diluted share a year ago. Excluding the tax charge in 2018 and the legal charge in 2017, net earnings, as adjusted, were $165.0 million, or $2.88 per diluted share, in the third quarter of 2018 and $142.7 million, or $2.45 per diluted share, in the third quarter of 2017, respectively.