Snap-On 3Q profit rises 9 percent, tops St. view
KENOSHA, Wis. -- Tool maker Snap-On Inc. said Thursday its third-quarter net income rose 9 percent, boosted by contributions from its financing business.
Like a lot of manufacturers, Snap-On has a financing subsidiary that helps customers make purchases.
The Kenosha, Wis.-based company earned $74.1 million, or $1.26 per share, up from $67.8 million, or $1.16 per share, in the same quarter last year. Analysts, on average, expected a profit of $1.23 per share, according to a FactSet poll.
Total revenue, which includes both sales and financial services revenue, rose 3 percent to $752.1 million from $729.9 million. Net sales rose 2 percent to $711.6 million, while financial services revenue jumped 24 percent to $40.5 million.
Analysts expected $706.6 million in revenue.
Snap-On said its results were pulled down by the effects of unfavorable exchange rates. Excluding that, the company said its sales to existing customers rose nearly 5 percent.
Snap-On, like other companies that do significant business outside the U.S., can be hurt by a rising dollar because income earned in foreign currencies shrinks when it's translated back into the U.S. dollar.