Snap-On 1Q net income rises 17 pct

Snap-On posts 17 pct increase in 1st-qtr net income on profitability improvements

Associated Press

KENOSHA, Wis. (AP) -- Snap-On's first-quarter net income rose 17 percent, with healthy margins offsetting a revenue shortfall.

The Kenosha, Wis., company earned $82.8 million, or $1.40 per share, up from $71 million, or $1.21 per share, in the same quarter last year. Revenue edged up less than 1 percent to $741.7 million from $735.2 million.

The profit beat Wall Street predictions, though revenue fell short. Analysts, on average, expected a profit of $1.34 per share on $753.1 million in revenue, according to FactSet.

The company's results got a boost from a 9 percent increase in sales at its repair systems and information group to $246.1 million. Operating earnings at the business increased 16 percent to $56.5 million.

Sales at Snap-On Inc.'s tool business rose 3 percent to $327.3 million, while commercial and industrial sales fell 7 percent to $266.4 million on lower military and European demand.

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