Snap-on Inc. announced 2012 operating results for the fourth quarter and full year.
• Sales of $753.2 million in the quarter increased $16.6 million, or 2.3 percent, from 2011 levels; excluding $1.9 million of unfavorable foreign currency translation, organic sales increased 2.5 percent.
• Operating earnings before financial services of $111.4 million in the quarter improved to 14.8 percent of sales as compared to $103.8 million, or 14.1 percent of sales, last year.
• Financial services operating earnings of $29.3 million in the quarter increased $7.2 million from 2011 levels, reflecting the growth of the on-book finance portfolio.
• Consolidated operating earnings of $140.7 million in the quarter improved to 17.7 percent of revenues (net sales plus financial services revenue) as compared to $125.9 million, or 16.3 percent of revenues, last year.
• Net earnings of $84.6 million, or $1.43 per diluted share, for the quarter compares with net earnings of $74.3 million, or $1.27 per diluted share, a year ago.
• Full year 2012 sales of $2.94 billion increased 2.9 percent from 2011 levels; excluding $46.0 million of unfavorable foreign currency translation, organic sales increased 4.6 percent. Full year 2012 net earnings of $306.1 million, or $5.20 per diluted share, compares with 2011 net earnings of $265.2 million, or $4.52 per diluted share, excluding last year’s $18.0 million pretax ($11.1 million after tax, or $0.19 per diluted share) arbitration settlement gain. Net earnings for the full year 2011, including the arbitration settlement gain, were $276.3 million or $4.71 per diluted share.
“We believe our performance in the fourth quarter of 2012 further confirms Snap-on’s strengths in making work easier for serious professionals performing critical tasks, where the costs and penalties for failure can be high,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “In the fourth quarter and throughout 2012, we continued to progress in those strategic areas of importance that we’ve identified as being decisive to our future, while achieving higher year-over-year sales and operating income despite ongoing macroeconomic and political headwinds impacting specific parts of our business.
"As we move forward in 2013, we believe we will make continued advancements along our coherent runways for growth and achieve further improvements from our Snap-on value creation processes. Finally, our progress in 2012 would not have been possible without the tremendous contributions and efforts of our franchisees and associates worldwide; I thank them all for their significant commitment and extraordinary dedication.”
Company reports gain in operating earnings over 2011.
Organic sales increase 1.5 percent in first quarter.
According to a 2011 Frost & Sullivan survey