Snap-On beats Q4 profit estimates on higher demand for automotive tools
Feb 8 (Reuters) - Equipment maker Snap-on Inc beat quarterly profit estimates on Thursday, bolstered by strong demand for its parts and tools from automotive customers.
The Kenosha-Wisconsin based company manufactures and markets tools and equipment to industries such as aerospace, transportation, construction, military, natural resources, power generation and technical education.
"In the fourth quarter, our businesses serving critical industries demonstrated continuing positive momentum," CEO Nicholas Pinchuk said.
Snap-On is seeing sustained demand from the automotive after-market, which caters to parts used in the repair or enhancement of vehicles.
On an adjusted basis, Snap-On reported a profit of $4.75 per share, beating analysts' average expectation of $4.66, according to LSEG data.
Fourth-quarter net sales for the company rose 3.5% to $1.20 billion, from $1.16 billion a year earlier.
The tool-maker has also been dealing with inflationary pressures through 2023 by cutting costs, raising prices and curbing discounts, and reported a full-year capital expenditure of $95 million.
It raised the capital expenditure forecast for 2024 to between $100 million and $110 million, compared with $90 million to $100 million a year earlier. (Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Krishna Chandra Eluri)
