Snap-on's profit beats Street estimates on healthy aftermarket business

Snap-On

20/07/2023 12:52

July 20 (Reuters) - Toolmaker Snap-on Inc  SNA.N  beat
Wall Street estimates for second-quarter profit on Thursday,
powered by healthy demand for its repair tools and equipment
from automotive and industrial customers. 
    Snap-on, which caters to industries such as aerospace, oil
and gas and automotive, has benefited from a buzzing aftermarket
business. 
    The company dealt with inflation headwinds by raising
prices, curbing discounts and finding creative ways to cut
costs. 
    "We project that capital expenditures in 2023 will
approximate $100 million, of which $48.8 million was incurred in
the first six months of the year," the company said. 
    For the quarter ended July 1, sales at the Snap-on Tool
segment, its largest, rose 0.48% compared with a year earlier to
$523.1 million. 
    The company's second-quarter net earnings rose 14% to $264
million, or $4.89 per diluted share, ahead of Wall Street
estimates of $4.58 per share, according to Refinitiv data.
    Its net sales rose roughly 4.8% to $1.19 billion in the
quarter, in line with the analysts' estimates.
      

 (Reporting by Pratyush Thakur in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((pratyush.thakur@thomsonreuters.com;))