Commercial & Industrial Group segment sales of $275.6 million in the quarter decreased $19.8 million, or 6.7%, from 2011 levels. Excluding $1.7 million of unfavorable foreign currency translation, organic sales in the quarter decreased 6.2% year over year primarily due to lower sales to the military and in the segment’s European-based hand tools business as a result of continued economic weakness in that region.
Operating earnings of $31.9 million in the period decreased $1.1 million, or 3.3%, from 2011 levels, while the operating margin (operating earnings as a percentage of segment sales) of 11.6% increased from 11.2% a year ago.
Snap-on Tools Group segment sales of $321.6 million in the quarter rose $28.8 million, or 9.8%, from 2011 levels; excluding $1.4 million of favorable foreign currency translation, organic sales increased 9.3%, reflecting increases across both the company’s U.S. and international franchise operations.Operating earnings of $45.6 million in the period increased $6.0 million, or 15.2%, from 2011 levels and the operating margin of 14.2% improved from 13.5% a year ago. Repair Systems & Information Group segment sales of $241.6 million in the quarter increased $5.1 million, or 2.2%, from 2011 levels; excluding $1.6 million of unfavorable foreign currency translation, organic sales rose 2.9%, primarily due to gains in sales of diagnostics and repair information products to repair shop owners and managers, and in sales to Original Equipment Manufacturer (OEM) dealerships. Operating earnings of $55.4 million in the period increased $6.2 million, or 12.6%, from 2011 levels and the operating margin of 22.9% increased from 20.8% a year ago. Financial Services operating earnings of $29.3 million on revenue of $42.9 million in the quarter compared with operating earnings of $22.1 million on revenue of $35.5 million a year ago. Corporate expenses of $21.5 million in the fourth quarter compared with $18.0 million last year. Outlook In 2013, Snap-on expects to continue with the advancement of its strategic framework designed to enhance its mobile tool distribution network, expand in the vehicle repair garage, extend to critical industries and build in emerging markets. In pursuit of these initiatives, Snap-on anticipates that capital expenditures in 2013 will be in a range of $70 million to $80 million. Snap-on expects that its full year 2013 effective income tax rate will be comparable to its 2012 rate.