Snap-On Organic Sales Up 3.1% in 2Q - Modern Distribution Management

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Snap-On Organic Sales Up 3.1% in 2Q

Repair systems & information group segment sales had the greatest increase.
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Snap-on Incorporated (NYSE: SNA), Kenosha, WI, reported sales for the second quarter of $764.1 million, an increase of 3.6 percent from 2012 levels.

Organic sales, excluding $4.7 million of unfavorable foreign currency translation and $8.5 million of sales from the previously announced acquisition of Challenger Lifts Inc., increased 3.1 percent. Profit increased 15.7 percent to $88.4 million.

Commercial & industrial group segment sales of $266.2 million in the quarter decreased 6.1 percent from 2012 levels primarily due to lower sales to the military and in the segment’s European-based hand tools business. Excluding $2.1 million of unfavorable foreign currency translation, organic sales decreased 5.4 percent. Operating earnings of $33.6 million increased 2.4 percent from 2012 levels.

Snap-on tools group segment sales of $346.2 million rose 6.5 percent in the quarter compared to the same period in 2012, reflecting sales gains across both the company’s U.S. and international franchise operations. Excluding $1.5 million of unfavorable foreign currency translation, organic sales increased 7 percent. Operating earnings of $54.5 million in the period increased 22.5 percent from 2012 levels.

Repair systems & information group segment sales of $246.2 million increased 8.3 percent from 2012 levels. Excluding $8.5 million of sales from the Challenger acquisition and $800,000 of unfavorable foreign currency translation, organic sales in the quarter rose 4.9 percent, primarily due to higher sales to OEM dealerships and gains in sales of diagnostics and repair information products to independent repair shop owners and managers. Operating earnings of $56.7 million increased 8.6 percent year-over-year.

For the first six months, sales for Snap-on were $1.5 billion, a 2.2 percent increase compared to the same period a year earlier. Profit increased 15.7 percent to $88.4 million.

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