By Dean Seal
Snap-On logged a lighter profit in the first quarter as tool demand, particularly for bigger equipment that requires financing, was pressured by uncertainty about the economy.
The maker of high-end tools and equipment posted a profit of $240.5 million, or $4.51 a share, compared with $263.5 million, or $4.91 a share, in the same period a year earlier. Analysts polled by FactSet had been looking for $4.81 a share.
Sales for the quarter slid 3.5% to $1.14 billion, missing analyst projections for $1.2 billion, according to FactSet.
Contributing to the decline were lower organic sales, down 2.3%, and unfavorable foreign-currency translation accounted for the rest of the slump. Including financial-services revenue, total revenue was $1.24 billion.
The quarter was characterized by elevated macroeconomic uncertainty, leading to mixed results, Chief Executive Nick Pinchuk said. The so-called grassroots economy, including the technician customers of the company's tools business, became more reluctant to purchase financed products, he said.
"These are times of expanding turbulence," Pinchuk said.
Shares retreated 6% to $312 in premarket trading.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
April 17, 2025 06:54 ET (10:54 GMT)
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