Snap-On 2Q net income jumps 16 pct

Snap-On posts 2nd-qtr net income up 16 pct, helped by higher financing division profits

Associated Press

KENOSHA, Wis. (AP) -- Tool and diagnostic equipment maker Snap-On Inc. said Thursday its second-quarter net income jumped 16 percent, helped by higher profits at its financing business and lower restructuring costs.

The Kenosha, Wis., company earned $88.4 million, or $1.50 per share, for the three months ended June 29. That compared with $76.4 million, or $1.30 per share, in the same quarter of 2012.

Revenue rose 4 percent to $764.1 million, from $737.9 million last year.

The results beat Wall Street predictions. Analysts, on average, expected a profit of $1.46 per share, on $758.1 million in revenue, according to FactSet.

Operating earnings at the company's financial services business jumped 20 percent, to $30.6 million.

Meanwhile, restructuring costs totaled $1.8 million, down from $10.2 million in the year-ago period, which included $6.8 million in costs related to the settlement of a pension plan.

Sales at the company's tools group business increased nearly 7 percent to $346.2 million, as sales rose at both its U.S. and European franchise operations. And repair systems and information group sales increased 8 percent to $246.2 million.

But commercial and industrial group sales fell 6 percent to $266.2 million, hurt by lower sales to the military and in Europe, the company said.

Snap-On shares closed Wednesday at $93.11, up nearly 18 percent since the start of the year.

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