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$SNA 1Q15 10-Q: SNA intends to make contributions of $7.1MM to its foreign pension plans and $2MM to its domestic pension plans in 2015, as required by law. In 1Q15, SNA made $15.3MM of cash contributions to its domestic pension plans, consisting of $15MM of discretionary contributions and $0.3MM of required contributions.
$SNA said its investments in emerging markets such as China and India are profitable but the company continues to keep investing. $SNA sees opportunities in these markets and is constantly trying to reposition itself in terms of stores. The company expects to see returns but does not view these as huge profit opportunities in the near term.
$SNA expects that capital expenditures in 2017 to be in a range of $80-90MM, of which $18.6MM was expended in 1Q. The company also anticipates that its full year 2017 effective income tax rate will be comparable to its 2016 full year rate.
$SNA expects to make continued progress in 2017 along its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena and developing and expanding its professional customer base. This is not only in automotive repair, but in adjacent markets, additional geographies and other areas.
$SNA reported a rise in 1Q17 earnings driven by higher sales as well as ongoing benefits from Snap-on Value Creation Processes. Net income rose to $141.6MM or $2.39 per share from $128.3MM or $2.16 per share last year. Net sales grew to $887.1MM from $834.2MM, on 4.1% organic sales gain and acquisition-related sales.
$SNA expects to make continued progress in 2017 along its defined runways for coherent growth, leveraging capabilities as well as developing and expanding its professional customer base in adjacent markets, additional geographies and other areas. $SNA sees capital expenditures in 2017 of $80-90MM and effective tax rate to be comparable to 2016.
$SNA reported a rise in 4Q16 earnings as 3.6% organic sales gain and acquisition-related sales drove sales higher. Net income rose to $146.3MM or $2.47 per share from $131.4MM or $2.22 per share last year. Net sales grew to $889.8MM from $851.7MM. Operating earnings improved 90 basis points to 23.6% of revenues.
In Commercial & Industrial, $SNA's sales rose marginally YoverY. Gross profit in the segment rose $3.2MM, while GM of 39% rose 110 BP, driven by savings from RCI initiatives. In Snap-on Tools group, sales rose 4.4%, while organic sales rose 5.6%, indicating mid single-digit gains in the company's US and international franchise operations.
$SNA's 3Q16 corporate expenses of $22.5MM declined $1.2MM from $23.7MM a year ago, helped by lower pension expense. $SNA said it expects its CapEx in 2016 to approximate $80MM, of which $56.6MM was incurred through the end of 3Q16. The company also expects its FY16 effective income tax rate to be slightly below its FY15 rate.
$SNA said that net cash used by investing activities of $95.3MM included $76.9MM to fund the net increase in finance receivables. 2Q16 CapEx was $20.6MM vs. $27.7MM in 2Q15. The company's inventories rose $9.3MM from 2015 year-end levels mainly to support continued higher customer demand and new product introductions.
During 2Q16, $SNA's C&I Group's sales fell 3.4%. Excluding $4.2MM of unfavorable foreign currency translation, C&I's organic sales fell 2%, due to a double-digit decline in sales to customers in critical industries. Snap-on Tools Group sales rose 4.5% and gross profit was $182.1MM for the quarter. RS&I sales rose 6.4% vs. 2Q15.
$SNA's 2Q16 financial services revenue was $69.3MM, up 18.1% from 2Q15 and operating earnings were $49.5MM, up 19.6% from 2Q15. These increases mainly reflect the continued growth of the financial services portfolio. The company's consolidated operating earnings of $215.9MM, including $6.4MM of unfavorable FX effects, rose 12.3% for the quarter.
Maker and marketer of high-end tools $SNA said that 2Q16 reported sales were up 2.4% or $872.3MM, which included an unfavorable foreign currency translation impact of $10.2MM. This also reflected an incremental $5.9MM from last year's Ecotechnics acquisition. The company's organic sales rose 2.9% and OpCo operating margin expanded by 140 BP.