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Wednesday, April 22, 2009

Snap-On beats by $0.02, misses on revs, EPS falls 38%

Snap-on Inc. (SNA) said Wednesday that first-quarter earnings of $0.60 per share, $0.02 better than the First Call consensus of $0.58; revenues fell 20.6% year/year to $572.6 mln vs the $648.4 mln consensus. Snap-on expects restructuring costs in the second quarter of 2009 to approximate $8 million to $10 million.

Snap-on is also continuing a number of its planned growth investments, including further expansion of its manufacturing capacity in China and in Eastern Europe. Capital expenditures for full-year 2009 are expected to be in a range of $60 million to $70 million, down from the previously communicated $75 million to $80 million.

“Continuing difficult economic conditions further weakened customer demand in the first quarter,” said Nick Pinchuk, Snap-on president and chief executive officer. “In light of these challenges we increased our focus on rapid continuous improvement, sourcing and other cost reduction initiatives. At the same time, we moved forward during the quarter with our strategic growth investments and with our most important value creation initiatives, such as product innovation. I thank our franchisees and associates worldwide for their continuing confidence and contributions during these challenging times.”

Disclosure I am long SNA shares.

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