Snap-on Announces Third Quarter 2019 Results

Snap-on Incorporated , a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks, today announced operating results for the third quarter of 2019.

  • Net sales of $901.8 million increased $3.7 million, or 0.4%, from 2018 levels, reflecting a $12.5 million, or 1.4%, organic sales increase and $2.9 million of acquisition-related sales, partially offset by $11.7 million of unfavorable foreign currency translation.
  • Operating earnings before financial services for the quarter of $167.7 million, or 18.6% of sales, including $4.4 million of unfavorable foreign currency effects, compared to $173.1 million, or 19.3% of sales, in 2018.
  • Financial services revenue of $84.1 million in the third quarter of 2019 increased $2.1 million from 2018 levels; financial services operating earnings of $61.0 million increased $1.7 million from $59.3 million last year.
  • Consolidated operating earnings for the quarter of $228.7 million, including $4.7 million of unfavorable currency effects, compared to $232.4 million last year. As a percentage of revenues (net sales plus financial services revenue), consolidated operating earnings were 23.2% and 23.7% in the third quarters of 2019 and 2018, respectively.
  • The effective income tax rate of 23.5% in the quarter compared to 24.0% last year. In 2018, the effective income tax rate included a charge of 90 basis points, or $1.8 million, related to the implementation of U.S. tax legislation (the “tax charge”). Excluding the tax charge, the 2018 effective tax rate, as adjusted, was 23.1%.
  • Net earnings of $164.6 million, or $2.96 per diluted share, compared to $163.2 million, or $2.85 per diluted share, a year ago. Excluding the above-mentioned tax charge, net earnings, as adjusted, were $165.0 million in 2018, or $2.88 per diluted share.

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