This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Snap-on Management Discusses Q2 2012 Results - Earnings Call Transcript

And the operating margin expansion is a reflection of our Snap-on Value Creation Processes at work. As I said before, these are crucial set of principles that we apply everyday. Our focus on safety, on quality, customer connection, Rapid Continuous Improvement or RCI and on innovation. It's a powerful framework and it is helping to fuel our results. I mentioned that the OpCo operating margin expanded by 60 basis points from last year, but I'll also point out that this year's restructuring charge in the second quarter included $6.8 million for the settlement of a pension plan related to our Canadian tools storage facility, which we closed last year. But for that item, the margin expansion would have been 150 basis points. That increased profitability is a strong testimony that the positive contributions of Snap-on value creation.

Now regarding sales growth. The numbers appeared to validate that we are building advantage in each of the 4 areas we've identified as being decisive for our future. Critical industries where the penalty for failure is high. Another double-digit gain for our industrial division, with the growth rate in the aerospace sector leading the way.

Emerging markets. In addition to strong double-digit gains in China, as you probably would expect, we also saw a particularly large uplifts in places like Indonesia and Russia.

The franchise channel what we call auto mechanics or auto technicians, volume is up 10% in the quarter with strong operating margin.

And finally, in vehicle repair shops, we saw growth in categories that are quite important to those shop owners and managers. Sales in the RS&I business that provide diagnostic units, repair information and shop management systems were up high single digits.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs