Snap-on 1Q Profit Falls But Beats Estimates

KENOSHA, Wis. (AP) — Tool maker Snap-on Inc. said Wednesday its first-quarter profit dropped 39 percent, as the effects of tough economic times across the world cut into its sales.

Earnings attributable to Snap-on fell to $34.8 million, or 60 cents per share, from $56.6 million, or 97 cents per share, in the same quarter last year. Sales dropped 21 percent to $572.6 million from $721.6 million.

Analysts polled by Thomson Reuters expected a profit of 58 cents per share on $648.4 million in revenue.

Snap-on said the weak global economy hurt its sales of big-ticket items such as tool storage and undercar equipment during the quarter. In addition, worsening economic conditions in Europe cut into sales volumes at the company's European tool business.

Commercial and industrial group sales dropped 27 percent to $259.8 million, while sales at its tools division fell 16 percent to $242.4 million and diagnostics and information group sales decreased 15 percent to $132.5 million.

The company did not release a specific guidance, but said that it expects the current economic trends to continue and for its second-quarter results to fall short of its 2008 totals.

Snap-on shares rose $1.47, or 5.1 percent, to $29.80 in morning trading.