Snap-On beats Q4 profit estimates on higher demand for automotive tools

Snap-On

08/02/2024 12:43

Feb 8 (Reuters) - Equipment maker Snap-on Inc  SNA.N 
beat quarterly profit estimates on Thursday, bolstered by strong
demand for its parts and tools from automotive customers.
    The Kenosha-Wisconsin based company manufactures and markets
tools and equipment to industries such as aerospace,
transportation, construction, military, natural resources, 
power generation and technical education. 
    "In the fourth quarter, our businesses serving critical
industries demonstrated continuing positive momentum," CEO
Nicholas Pinchuk said.
    Snap-On is seeing sustained demand from the automotive
after-market, which caters to parts used in the repair or
enhancement of vehicles.
    On an adjusted basis, Snap-On reported a profit of $4.75 per
share, beating analysts' average expectation of $4.66, according
to LSEG data.   
    Fourth-quarter net sales for the company rose 3.5% to $1.20
billion, from $1.16 billion a year earlier.
    The tool-maker has also been dealing with inflationary
pressures through 2023 by cutting costs, raising prices and
curbing discounts, and reported a full-year capital expenditure
of $95 million.
    It raised the capital expenditure forecast for 2024 to
between $100 million and $110 million, compared with $90 million
to $100 million a year earlier.

 (Reporting by Aatreyee Dasgupta in Bengaluru; Editing by
Krishna Chandra Eluri)
 ((Aatreyee.Dasgupta@thomsonreuters.com;))