Snap-on 1Q Profit Up 53% On Boost From Emerging Markets

  DOW JONES NEWSWIRES 
 

Snap-on Inc.'s (SNA) first-quarter earnings soared 53% as the tool maker Thursday reported strong sales in emerging markets and its finance arm swung to a profit.

The results easily topped Wall Street expectations.

The company controls a big chunk of the professional tool market, where it competes with Stanley Black & Decker Inc.'s (SWK) Mac Tools unit and Danaher Corp.'s (DHR) Matco. It 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.

The company reported a profit of $56.2 million, or 96 cents a share, up from $36.8 million, or 63 cents a share, a year earlier. Net sales increased 12% to $693.7 million.

Analysts polled by Thomson Reuters recently forecast earnings of 92 cents a share on revenue of $685.1 million.

Gross margin increased to 47.7% from 46.3%.

The commercial and industrial segment, its largest by revenue, saw sales rise 10% on higher sales in emerging markets and in its Europe-based hand-tools business. The Snap-on tools group posted sales growth of 14%, helped by continued growth in the U.S.

Operating earnings from the financial-services business grew to $12.5 million from an operating loss a year earlier.

Shares closed at $61.01 and were inactive premarket. The stock has gained 26% over the past 12 months.

-By Drew FitzGerald and Jenny Roth, Dow Jones Newswires; 212-416-2909; [e-mail]