Snap-On misses quarterly sales estimates on lower tool demand

Snap-On

17/10/2024 12:33

Oct 17 (Reuters) - Snap-On  SNA.N  posted a
lower-than-expected third-quarter sales on Thursday, as
inflationary pressures weighed on demand in the tools segment. 
    Higher borrowing costs and a rise in prices of tools - one
of the company's biggest revenue drivers - have led customers to
limit purchases. 
    Sales in the Snap-On's tools segment fell about 3% to $500.5
million, marking the third straight quarter in which the company
reported a sales drop in the division. 
    Total sales fell 1.1% to about $1.15 billion, compared to a
year ago, marginally missing the average analysts' estimate of
about $1.16 billion, according to data compiled by LSEG.       
    The Kenosha, Wisconsin-based manufacturer, however, reported
a profit of $4.70 per share, compared with expectations of
$4.59.
    The profit growth was largely aided by lower costs.
Snap-On's operating margin before financial services increased
by 80 basis points to 22%.     

 (Reporting by Utkarsh Shetti in Bengaluru; Editing by Pooja
Desai)
 ((UtkarshUmesh.Shetti@thomsonreuters.com;))