snap on profit news

[SpiderGearsMan]

CHICAGO (MarketWatch) -- Snap-on Inc. posted a sharp drop in second-quarter profit Friday, and the toolmaker said it expects continued declines, at least for the near future.

Snap-on /quotes/comstock/13*!sna/quotes/nls/sna (SNA 38.02, +1.35, +3.68%) earned $37.4 million, or 65 cents a share, in the period, down from $66.9 million, or $1.15 a share, in the same quarter of 2008.

Revenue fell to $590 million from the year-earlier $766 million, as the global economic slowdown and stronger U.S. dollar weighed on the top line.

The average estimate of analysts polled by FactSet Research had been for the company to earn 65 cents a share on sales of $607 million.

Shares of Snap-on rose about 7% to close at almost $36.

 

[oldtools]

Either more offshoring or reduce executive salary to increase profit. But knowing these executives, it will be more offshoring. More wandaful Chinese Snap-On to come.

 

[rallenc]

Might want to dig a little deeper to see how much of decline is attributable to "restructuring" costs; closing plants and start up in "lower cost areas" .

I'm looking at a 1996 catalog where it lists the following manufacturing facilities:
Hand Tools: Kenosha, Milwaukee, Mt. Carmel, Ill,,Elizabethtown & Johnson City, TN
Diag and Shp Equip.: Crystal lake, IL., East Troy, WI, San Jose, CA
Power Tools: Natick, MA, Kenosha
Tool Storage: Algona, Iowa; Newmarket, Ontario

Barely 13 years ago, no Mexico, no Taiwan, No China, etc...

Anybody know which of the 1996 manufacturing facilities have been closed, if any?

 

[SpiderGearsMan]

there is a lot of "free trade "competition
gotta stay open

 

[fatfillup]

I remeber a stock investing program I heard a few years back that talked about Snap on. IIRC, they said they were lucky to have a 5 or 6 % net income on sales, mainly due to high overhead cost despite charging a premium price for premium tools. That overhead would include wages and salaries, older less efficiennt plants and of course all the expense to support their dealer network. We all ***** about the price of SO but they aren't making a killing and the way they market tools is expensive. Could they be more efficient? Probably, but I'm sure they have plenty of bean counters looking for savings.

Lets hope they keep as much manufacturing on shore as possible cause we need good jobs now and in the future.

 

[sonexer]

The Snap on guy in my area used to work in one of their regional supply warehouses for over 10 years. A little more than a year ago he was "downsized". He said they gave him the option of taking over an open route in the area and he took it.