Snap-on Tools Group segment sales of $333.8 million in the quarter rose $25.0 million, or 8.1%, from 2012 levels, reflecting sales gains across both the company’s U.S. and international franchise operations. Excluding $4.0 million of unfavorable foreign currency translation, organic sales increased 9.5%.
Operating earnings of $41.9 million in the period increased $1.7 million from 2012 levels and the operating margin of 12.6% compared with 13.0% a year ago.
Repair Systems & Information Group segment sales of $252.7 million in the quarter increased $30.7 million, or 13.8%, from 2012 levels. Excluding $15.6 million of sales from the Challenger acquisition and $0.2 million of favorable foreign currency translation, organic sales in the quarter rose $14.9 million, or 6.7%, primarily due to gains in sales of diagnostics and repair information products to independent repair shop owners and managers and higher sales to Original Equipment Manufacturer (OEM) dealerships.
Operating earnings of $57.9 million in the period increased $8.4 million from 2012 levels and the operating margin of 22.9% improved from 22.3% a year ago.Financial Services operating earnings of $31.6 million on revenue of $45.1 million in the quarter compared with operating earnings of $27.9 million on revenue of $40.5 million a year ago. Corporate expenses of $24.5 million in the quarter decreased from $26.9 million last year, primarily due to lower stock-based and mark-to-market expenses. Outlook 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 approximate $75 million. Snap-on also expects that its full year 2013 effective income tax rate will be comparable to its 2012 rate.
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