EXHIBIT 99
[GRAPHIC OMITTED]
Notice to Investors and Analysts
Snap-on Incorporated is consolidating the results of Snap-on Credit LLC, its 50%-owned U.S. joint venture between Snap-on and The CIT Group, Inc., effective with the beginning of Snap-on’s fiscal year 2004, based on the Company’s analysis of Financial Accounting Standards Board (“FASB”) Interpretation (“FIN”) No. 46 and 46R, as we reported in our Form 10-K for the period ended January 3, 2004. There has been no change in Snap-on’s ownership or any other change in relationship with Snap-on Credit or CIT. This accounting change will not affect reported net earnings, but it does impact the classification of revenues and expenses, as well as assets and liabilities. Reference should be made to Note 9 to the Consolidated Financial Statements found in Snap-on’s 2003 Annual Report for additional information on the Snap-on Credit joint venture.
As a result of the consolidation, Snap-on will report the results of its finance operations as a new business segment, “Financial Services,” beginning in fiscal 2004. The Financial Services segment will include Snap-on Credit LLC, as well as the company’s wholly owned finance subsidiaries in those international markets where we have dealer operations. Attached are supplemental quarterly consolidated statements of earnings for fiscal 2003 reflecting this new segment. These statements should assist you in reconciling previously reported results to those consistent with the presentation of the consolidated Income Statement for Snap-on Incorporated, beginning with First Quarter 2004 results to be reported on April 22, 2004.
If you have any questions, please contact Bill Pfund, Vice President – Investor Relations, at 262/656-6488, or atbill.h.pfund@snapon.com.
| Three Months Ended March 29, 2003 | |||||||||||
| As Previously Reported | Financial Services | Comparative Presentation | |||||||||
| Net sales | $ | 543.1 | $ | -- | $ | 543.1 | |||||
| Financial services revenue | -- | 22.5 | 22.5 | ||||||||
| Total revenue | 543.1 | 22.5 | 565.6 | ||||||||
Cost of goods sold | (297.7 | ) | -- | (297.7 | ) | ||||||
| Operating expenses | (212.9 | ) | (10.8 | ) | (223.7 | ) | |||||
| Net finance income | 10.5 | (10.5 | ) | -- | |||||||
| Operating earnings | 43.0 | 1.2 | 44.2 | ||||||||
Interest expense | (6.4 | ) | -- | (6.4 | ) | ||||||
| Other income (expense) - net | (3.7 | ) | (1.2 | ) | (4.9 | ) | |||||
| Earnings before income taxes | 32.9 | -- | 32.9 | ||||||||
Income taxes | (11.5 | ) | -- | (11.5 | ) | ||||||
| Net earnings | $ | 21.4 | $ | -- | $ | 21.4 | |||||
| Three Months Ended June 28, 2003 | |||||||||||
| As Previously Reported | Financial Services | Comparative Presentation | |||||||||
| Net sales | $ | 565.2 | $ | -- | $ | 565.2 | |||||
| Financial services revenue | -- | 23.4 | 23.4 | ||||||||
| Total revenue | 565.2 | 23.4 | 588.6 | ||||||||
Cost of goods sold | (319.1 | ) | -- | (319.1 | ) | ||||||
| Operating expenses | (216.6 | ) | (10.5 | ) | (227.1 | ) | |||||
| Net finance income | 11.2 | (11.2 | ) | -- | |||||||
| Operating earnings | 40.7 | 1.7 | 42.4 | ||||||||
Interest expense | (6.0 | ) | -- | (6.0 | ) | ||||||
| Other income (expense) - net | (0.4 | ) | (1.7 | ) | (2.1 | ) | |||||
| Earnings before income taxes | 34.3 | -- | 34.3 | ||||||||
Income taxes | (12.0 | ) | -- | (12.0 | ) | ||||||
| Net earnings | $ | 22.3 | $ | -- | $ | 22.3 | |||||
| Three Months Ended September 27, 2003 | |||||||||||
| As Previously Reported | Financial Services | Comparative Presentation | |||||||||
| Net sales | $ | 525.6 | $ | -- | $ | 525.6 | |||||
| Financial services revenue | -- | 21.6 | 21.6 | ||||||||
| Total revenue | 525.6 | 21.6 | 547.2 | ||||||||
Cost of goods sold | (303.8 | ) | -- | (303.8 | ) | ||||||
| Operating expenses | (200.7 | ) | (10.9 | ) | (211.6 | ) | |||||
| Net finance income | 10.0 | (10.0 | ) | -- | |||||||
| Operating earnings | 31.1 | 0.7 | 31.8 | ||||||||
Interest expense | (5.8 | ) | -- | (5.8 | ) | ||||||
| Other income (expense) - net | (2.4 | ) | (0.7 | ) | (3.1 | ) | |||||
| Earnings before income taxes | 22.9 | -- | 22.9 | ||||||||
Income taxes | (5.2 | ) | -- | (5.2 | ) | ||||||
| Net earnings | $ | 17.7 | $ | -- | $ | 17.7 | |||||
| Three Months Ended January 3, 2004 | |||||||||||
| As Previously Reported | Financial Services | Comparative Presentation | |||||||||
| Net sales | $ | 599.3 | $ | -- | $ | 599.3 | |||||
| Financial services revenue | -- | 22.8 | 22.8 | ||||||||
| Total revenue | 599.3 | 22.8 | 622.1 | ||||||||
| Cost of goods sold | (347.9 | ) | -- | (347.9 | ) | ||||||
| Operating expenses | (228.2 | ) | (10.1 | ) | (238.3 | ) | |||||
| Net finance income | 12.1 | (12.1 | ) | -- | |||||||
| Operating earnings | 35.3 | 0.6 | 35.9 | ||||||||
| Interest expense | (6.2 | ) | -- | (6.2 | ) | ||||||
| Other income (expense) - net | (2.5 | ) | (0.6 | ) | (3.1 | ) | |||||
| Earnings before income taxes | 26.6 | -- | 26.6 | ||||||||
Income taxes | (9.3 | ) | -- | (9.3 | ) | ||||||
| Net earnings | $ | 17.3 | $ | -- | $ | 17.3 | |||||
| Fiscal Year Ended January 3, 2004 | |||||||||||
| As Previously Reported | Financial Services | Comparative Presentation | |||||||||
| Net sales | $ | 2,233.2 | $ | -- | $ | 2,233.2 | |||||
| Financial services revenue | -- | 90.3 | 90.3 | ||||||||
| Total revenue | 2,233.2 | 90.3 | 2,323.5 | ||||||||
Cost of goods sold | (1,268.5 | ) | -- | (1,268.5 | ) | ||||||
| Operating expenses | (858.4 | ) | (42.3 | ) | (900.7 | ) | |||||
| Net finance income | 43.8 | (43.8 | ) | -- | |||||||
| Operating earnings | 150.1 | 4.2 | 154.3 | ||||||||
Interest expense | (24.4 | ) | -- | (24.4 | ) | ||||||
| Other income (expense) - net | (9.0 | ) | (4.2 | ) | (13.2 | ) | |||||
| Earnings before income taxes | 116.7 | -- | 116.7 | ||||||||
Income taxes | (38.0 | ) | -- | (38.0 | ) | ||||||
| Net earnings | $ | 78.7 | $ | -- | $ | 78.7 | |||||
