Snap-on 4Q income rises on tool and repair sales
KENOSHA, Wis. (AP) — Tool maker Snap-on Inc. said Thursday its net income rose 14 percent in the fourth quarter on greater sales of tools and repair systems.
Snap-on said its revenue from tools rose 10 percent and repair systems and information revenue edged higher. However sales in its commercial and industrial business fell 7 percent because the dollar gained strength relative to other currencies as well as lower sales in Europe, which is struggling with a weak economy, and a decrease in military sales.
Snap-on said its net income grew to $84.6 million, or $1.43 per share, from $74.3 million, or $1.27 per share, a year ago. It said revenue rose 2 percent to $753.2 million from $736.6 million.
Analysts expected net income of $1.37 per share, according to FactSet.
The company said revenue from the commercial and industrial group fell to $275.6 million over the three months that ended Dec. 31. Tools revenue rose 10 percent to $321.6 million and repair systems and information revenue rose 2 percent to $241.6 million.
For all of 2012, Snap-on's net income grew 11 percent to $306.1 million, or $5.20 per share, from $276.3 million, or $4.71 per share. Revenue increased 3 percent to $2.94 billion from $2.85 billion.
Shares of Snap-on lost $1.02 to $79.96 in morning trading. The stock has been trading around all-time highs and peaked at $82.69 Thursday morning.