Snap-On 2Q Profit Up 21% On Improved Sales And Margin

Snap-On Inc.'s (SNA) second-quarter profit rose 21% on improved sales and margins. Results topped analysts' expectations.

The maker of tools, such as automotive diagnostic equipment, has seen results improve from the distressed demand levels during the economic downturn. Its financial-services arm, the only segment that saw revenue decline in the quarter while earnings tumbled 90%. Still, Chairman and Chief Executive Nick Pinchuk said transactions in that segment are "well on track."

He added Snap-On has made progress in efforts including expanding the franchisee network, building its presence in auto-repair garages and focus on emerging markets.

Snap-On reported a profit of $45.3 million, or 78 cents a share, up from $37.4 million, or 65 cents a share, a year earlier. The most recent period included $3.1 million restructuring costs. Revenue jumped 10% to $647.6 million.

Analysts polled by Thomson Reuters most recently estimated earnings of 75 cents and $637 million in revenue.

Gross margin widened to 46.9% from 43%.

Sales at the commercial and industrial business, its largest by sales, rose 22% and profit soared. But that earnings surge was largely offset by the financial-services slump.

Shares closed at $44.53 Thursday and were inactive premarket. The stock has risen 5% this year.

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