Snap-on reports sales improvement
Snap-on Incorporated announced fourth quarter sales of $618.1 million were up 6.2% sequentially from third-quarter 2009 levels.
Fourth-quarter 2009 sales declined 7.4% from 2008 levels; excluding foreign currency translation, organic sales declined 11.1%.
Gross profit of $284.4 million in the quarter represented 46.0% of sales compared with 44.8% in the 2009 third quarter and 44.9% a year ago. Operating earnings before financial services in the 2009 fourth quarter were 11.5% of sales compared with 9.3% in the 2009 third quarter and 13.2% in the strong fourth quarter of a year ago.
Fourth quarter net earnings declined $22.0 million, or 38 cents per diluted share, from record 2008 earnings levels.
Full year sales of $2.36 billion declined 17.2% from 2008 levels. Full year net earnings of $134.2 million, or $2.32 per diluted share, compared to net earnings of $236.7 million, or $4.07 per diluted share, in 2008.
“We are encouraged by Snap-on’s fourth quarter results and by the financial and strategic headway reflected in our performance,” said Nick Pinchuk, Snap-on chairman and CEO. “While our overall results were below the record earnings achieved in the strong fourth quarter of 2008, our operations continued their sequential increases in the period. In addition, our financial services transition remains on track as we build our on-book finance portfolio.
Snap-on Tools Group operating earnings in the fourth quarter increased $3.9 million sequentially over third-quarter 2009 levels on $4.6 million of higher sales. Segment sales of $251.2 million in the quarter declined $1.2 million, or 0.5%, from 2008 levels
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