Snap-On 3Q Profit Soars 83% As Demand Continues To Stabilize

Date : 10/22/2010 @ 8:00AM
Source : Dow Jones News
Stock : Snap-ON Incorporated (SNA)
Quote : 183.2  0.51 (0.28%) @ 4:00PM

Snap-On 3Q Profit Soars 83% As Demand Continues To Stabilize

Historical Stock Chart

5 Years : From Jan 2013 to Jan 2018

Click Here for more Snap ON Charts.

Snap-on Inc.'s (SNA) third-quarter earnings surged 83% as the toolmaker saw demand continue to stabilize and the results beat analysts' expectations.

Snap-on controls about 55% of the professional tool market, where it competes with Stanley Black & Decker Inc.'s (SWK) Mac Tools unit and Danaher Corp.'s (DHR) Matco, according to Morningstar estimates. Snap-on gets more than half its sales from the U.S. and from the auto sector but has sought growth in emerging markets and higher-margin segments such as power generation and aerospace. Prior cost cutting also has boosted margins in recent quarters.

The company reported a profit of $46.5 million, or 80 cents a share, up from $25.4 million, or 44 cents a share, a year earlier. Revenue increased 12% to $653.1 million after falling 17% a year ago.

Analysts polled by Thomson Reuters most recently forecast earnings of 68 cents a share on revenue of $622 million.

Gross margin rose to 46.1% from 44.8%.

Commercial and industrial segment, its largest by revenue, saw sales rise 19% and earnings more than triple on the higher sales and prior restructuring efforts. The tools group posted 11% sales growth, but earnings fell 4.4% amid 2009 inventory gains.

The financial-services business returned to the black as revenue more than doubled to $17.2 million primarily on its portfolio growth since it ended a joint venture last fall with CIT Group Inc. (CIT) in which it had sold loans made to Snap-on customers.

Snap-on shares closed Thursday at $48.79 and were inactive premarket. The stock is up 30% the past year.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481;


Latest SNA Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....

No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts

Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.