Snap On 1Q Earnings Up 6% On Higher Sales, Margins

   DOW JONES NEWSWIRES 
 

Snap-On Inc.'s (SNA) first-quarter earnings rose 6% on higher sales and margins, with results topping expectations.

The maker of a host of tools such as automotive diagnostic equipment saw sales suffer as demand fell during the economic downturn as construction and home-improvement projects slowed.

Chairman and Chief Executive Nick Pinchuk said continuing efforts to enhance the franchisee network, expand in the auto repair garage, and a focus on emerging markets will put Snap-on in a strong position as the global economy begins to recover.

Snap-On reported a profit of $36.8 million, or 63 cents a share, up from $34.8 million, or 60 cents a share, a year earlier. Revenue increased 8.6% to $621.6 million.

Analysts polled by Thomson Reuters had most recently forecast earnings of 52 cents on $586 million in revenue.

Gross margin rose to 46.3% from 45.2% amid the sales gains.

Snap-On's commercial and industrial business, its largest by sales, saw the biggest profit and revenue gains.

Shares closed at $44.80 Monday and were inactive premarket. The stock has risen 62% in the past year.

-By Jodi Xu, Dow Jones Newswires; 212-416-3037; [e-mail]