The 2020 Mid-Year Economic Update_long

Day: February 3, 2009

Snap-On 4Q Profit Up 2.3%

Snap-on Inc., Kenosha, WI, a global manufacturer of tools, diagnostics, equipment, software and services, reported sales for the fourth quarter declined 10.1% to $667.8 million, in a year-over-year comparison. Profit improved 2.3% to $58.6 million.
 
For 2008, sales were $2.85 billion, down slightly from 2007. Profit increased 30.2% to $236.7 million.
 
Commercial & Industrial Group fourth quarter sales were $326.8 million, down 11.5% from fourth quarter 2007. Excluding $24.4 million of unfavorable currency translation, sales declined 4.9% year-over-year, primarily due to continued lower sales of professional tools in Europe and lower overall equipment sales worldwide.
 
Snap-on Tools Group sales of $252.4 million in the quarter declined 7.6%. ...

On Renegotiating Contracts, Leases to Cut Costs

In today's conditions, everyone is looking for ways to cut costs. One of the recommendations made by experts is to renegotiate set contracts. (See what Alan Beaulieu had to say on the subject of renegotiation in Economic Forecast Places Start of Recovery in 2010.)
 
How realistic is this method in cutting costs? According to a recent article on WSJ.com, companies have been able to negotiate savings of up to 15% of their operating costs by renegotiating leases. If you're a good paying customer, there's a chance your suppliers will also give you a discount if you agree to terms that can also help them, such as ...

Acquisitions Drive Sales Up For Thomas & Betts

Thomas & Betts Corp.,Memphis, TN , reported sales of $2.5 billion for 2008, up 15.8% over 2007. Profit was $265.3 million, up 44.8%.  

 

The year-over-year increase in sales was driven largely by acquisitions, which accounted for $314 million of the increase. Price increases related to higher commodity and energy costs helped to offset lower underlying sales volumes. Foreign currency benefited sales by approximately $19 million.

 Fourth quarter sales were $571.3 million, down 5.2% on a year-over-year basis. The sales decline is largely due to significantly lower sales volumes and the dramatic appreciation of the U.S. dollar versus other global currencies. Profit ...