Kenosha-based Snap-On Inc. saw earnings jump 15.5 percent during the first quarter and what chairman and chief executive officer Nick Pinchuk said “most would call a turbulent environment.”
The company reported net earnings of $2.16 per diluted share, up from $1.87 during the same period last year. Net income was up 16.1 percent to $128.3 million.
Top-line revenue figures did not do as well, climbing less than 1 percent to $834.2 million. Sales were hurt by $16.4 million of unfavorable foreign currency translation. Organic sales were up $20.2 million or 2.5 percent.
The company was able to increase its operating earnings before financial services of $155.4 million, moving its operating margin from 16.7 percent to 18.6 percent.
“We believe these results demonstrate not only the fundamental strength of Snap-on’s value proposition of making work easier for serious professionals, but also the continued progress along our defined runways for coherent growth while overcoming the headwinds of the current environment,” Pinchuk said.
The Snap-on tools group led the company’s strong quarter with $402.5 million in revenue. The $24.3 million increase represented a 6.4 percent jump, even with $6 million in currency headwinds.
The repair systems and information group generated $278.8 million in revenue for the quarter, a 2.4 percent increase. Organic sales were up $8.4 million, driven by increased sales of diagnostic and repair information products to independent repair shop owners and managers, increased sales of undercar equipment and higher sales to OEM dealerships.
The commercial and industrial group was the lone blemish on the solid quarter. Sales were down 3.5 percent to $287 million. While some gains were made in Asia and Europe, weakness in oil and gas and lower military spending brought the segment down.
Pinchuk said the company did see some strength in the segment, despite the challenges created by end markets. He also noted Snap-on has continued to invest in new products in advance of the markets turning around in the future.
“We’re ready to go. We’re all dressed up. When the party comes, we’re ready to dance,” he said during the company’s earnings call.
