EXHIBIT 99
Snap-on Third Quarter EPS in Line with Recent Outlook;
Strong Cash Flow Continues from Operational Fitness Improvements
KENOSHA, Wis.--(BUSINESS WIRE)--Oct. 22, 2002--Snap-on
Incorporated (NYSE:SNA), a global leader in tools, diagnostics and
equipment, announced third-quarter 2002 results, in line with the
outlook provided in early September.
-- Net earnings for the third quarter of 2002 were $19.2 million,
or $0.33 per share, compared with $0.6 million, or $0.01 per
share, in 2001. In the third quarter of 2002, Snap-on had
restructuring and other non-recurring charges of $1.6 million
($1.1 million after tax or $0.02 per share) for costs
associated with previously announced restructuring activities.
In the third quarter of 2001, Snap-on incurred special charges
of $34.4 million ($23.3 million after tax or $0.40 per share)
for restructuring and other non-comparable costs. Earnings
before special charges in 2002 were $20.3 million, or $0.35
per share, compared with $23.9 million, or $0.41 per share, in
2001.
-- Cash flow from operating activities was $63.4 million in the
third quarter of 2002 compared with $48.2 million in 2001.
Free cash flow of $52.4 million in the quarter exceeded net
earnings, largely as a result of better working capital
management, and was used primarily to reduce debt. As a
result, total debt was $407.8 million at the end of the third
quarter, down $42.3 million from the end of the second
quarter. Total debt to total capital strengthened to 32.5%,
attaining the company's targeted level of 30-35%. Year over
year, debt decreased $124.8 million or 23.4%.
-- Net sales were $502.4 million in the third quarter of 2002, a
1.1% decrease from the $508.1 million during the same quarter
the prior year. Currency translation had a 2% favorable impact
on net sales in the quarter.
"Operating earnings and margins were disappointing in the quarter,
primarily due to lower volume and its related effects, as well as the
higher costs to drive our Profitable Growth initiatives. We are
continuing to take actions where economic weakness has slowed product
demand, the impact of which has led to near-term margin pressure,"
said Dale F. Elliott, chairman and chief executive officer. "Snap-on
is realizing the expected savings from Operational Fitness activities
taken during the past year, and we are continuing to aggressively
address those factors that are temporarily depressing results."
Third Quarter Results
In the third quarter of 2002, net sales declined to $502.4 million
from $508.1 million during the same quarter the previous year. Lower
sales in the Snap-on Dealer Group offset higher sales in the
Commercial and Industrial Group. "We are assisting dealers - our
strategic partners - in better managing their working capital through
enhanced business training," said Elliott. "A short-term consequence
has been lower year-over-year sales to our dealers, as they actively
work to reduce their inventory levels. However, market demand has
remained strong, as U.S. dealer sales to end-users increased at a
mid-single digit percent rate over the prior year." In the Commercial
and Industrial Group, favorable currency translation accounted for
most of the sales gain, while overall demand for big-ticket products
and for tools in the industrial marketplace largely remained flat.
Net earnings for the third quarter of 2002 were $19.2 million, or
$0.33 per share, compared with $0.6 million, or $0.01 per share, for
the third quarter of 2001. The increase in net earnings reflects lower
special charges in 2002, benefits from Snap-on's restructuring and
cost reduction initiatives, the elimination of goodwill and certain
other intangible amortization, higher net finance income and lower
interest expense. Excluding the impact of special charges, these
improvements were offset by unfavorable manufacturing cost absorption,
increased pension and bad debt expense, and continued higher spending
for new product development and the company's "More Feet on the
Street" dealer expansion and enhancement initiative. In the 2002 third
quarter, special charges of $1.6 million ($1.1 million after tax or
$0.02 per share) were incurred for previously announced restructuring
activities. This compares with special charges of $34.4 million ($23.3
million after tax or $0.40 per share) for restructuring and other
non-comparable costs incurred in the 2001 third quarter.
Snap-on ceased amortizing goodwill and certain other intangibles
at the beginning of its 2002 fiscal year as prescribed by Statement of
Financial Accounting Standards (SFAS) No. 142, "Goodwill and Other
Intangible Assets." The adoption of this statement resulted in a
favorable year-over-year comparison due to the elimination of $3.8
million ($3.2 million after tax or $0.05 per share) of amortization
that was included in 2001 third-quarter operating expenses.
In the Snap-on Dealer Group, worldwide sales decreased 7.6% to
$240.0 million in the third quarter of 2002 from $259.6 million in the
comparable prior-year period, reflecting a decline in equipment sales
through the tech rep organization and lower sales to U.S. dealers, as
they reduced inventory levels. While sales to franchised dealers
declined in the quarter, end-user demand remained strong. Overall
dealer sales of tools, handheld diagnostics products and tool storage
to end-users - automotive technicians and mechanics - increased at a
mid-single digit percent rate over the comparable period of 2001.
The leaner inventory position of dealers, largely due to the
strong sell-through of products, reflects Snap-on's continued focus on
enhancing the business proposition for its franchised dealers under
the More Feet on the Street dealer expansion and enhancement
initiative. In the quarter, a net increase of 28 dealers was achieved
under this program in the U.S. dealer business, primarily through the
growth of second vans and second franchises. This brings the
year-to-date total net increase to 144 dealers in the U.S. business.
Operating earnings declined to $11.6 million in the 2002 third quarter
compared with $30.3 million a year ago, reflecting the lower sales
volume and its related margin effects, higher pension and bad debt
expense and higher costs from the More Feet on the Street program.
In the Commercial and Industrial Group, sales grew 5.6% in the
third quarter to $262.4 million from $248.5 million in the 2001 third
quarter, including a 4% benefit from favorable currency translation.
Higher sales were achieved in Snap-on's facilitation, information
products and international industrial tool operations. These increases
were offset by continued soft demand in North America for tools and
equipment in the industrial and capital goods marketplace. Operating
earnings were $19.0 million, a significant increase from $5.5 million
a year ago. The operating margin improved to 7.3% of sales from 2.2% a
year ago, reflecting benefits from restructuring and Operational
Fitness activities, the elimination of goodwill and certain other
intangible amortization, and the absence of special charges that
depressed the 2001 third-quarter margin.
Net finance income increased $2.6 million in the third quarter of
2002 compared with a year ago. Higher credit originations, related to
the U.S. dealer business and the continued strong end-user demand,
along with a favorable interest-rate environment, contributed to the
increase.
Strong cash flow, exceeding net income in the quarter, was
achieved through a reduction in working capital. As a percent of net
sales, working capital improved to 27.5% in the 2002 third quarter
from 32.3% in the third quarter of 2001. Working investment (accounts
receivable plus inventory less accounts payable) turnover increased to
2.4 turns from 2.2 turns in the year-ago period, progressing towards
the 4.0 turns target for 2005.
Nine Month Results
For the nine months of 2002, net sales were $1,559.6 million
compared with $1,561.1 million in the first nine months of last year.
Net earnings were $72.9 million, or $1.25 per share, in 2002 compared
with $36.4 million, or $0.62 per share, in 2001. Before special
charges and cumulative effects in both years, earnings in 2002 were
$75.9 million, or $1.30 per share, compared with $76.6 million, or
$1.32 per share, in 2001.
Special charges totaled $9.0 million ($5.8 million after tax or
$0.10 per share) in 2002 compared with $54.9 million ($37.7 million
after tax or $0.65 per share) in 2001. Additionally, Snap-on ceased
amortizing goodwill and certain other intangibles at the beginning of
its 2002 fiscal year as prescribed by SFAS No. 142, resulting in a
favorable year-over-year comparison due to the elimination of $11.3
million ($9.5 million after tax or $0.16 per share) of amortization
that was included in 2001 nine-month operating expenses. Nine-month
net earnings in 2002 also reflect a cumulative effect after-tax gain
of $2.8 million, or $0.05 per share, in the first quarter from the
recognition of negative goodwill as required by SFAS No. 142. In 2001,
the adoption of SFAS No. 133, "Accounting for Derivative Instruments
and Hedging Activities," resulted in a cumulative effect after-tax
loss of $2.5 million, or $0.05 per share.
In the Dealer Group, nine-month sales were $770.6 million in 2002
compared with $777.3 million in 2001. Operating earnings were $69.1
million in 2002 compared with $84.1 million a year ago. In the
Commercial and Industrial Group, nine-month sales were $789.0 million
in 2002 compared with $783.8 million in 2001. Operating earnings grew
to $47.9 million from $26.3 million a year ago. Net finance income for
the nine months was $26.4 million in 2002 compared with $27.7 million
in 2001.
Outlook
Snap-on expects no improvement in the general worldwide economic
environment for the remainder of 2002, and currently sees little
indication for improvement early in 2003. "Despite the difficult
conditions, we are encouraged by the progress we are making on a
number of our key priorities within the business," said Elliott. Based
on the general economic outlook and the typical sequential seasonal
sales increase in the fourth quarter, Snap-on expects its earnings to
be consistent with the current range of analyst estimates for the
fourth quarter of 2002, which is $0.50 to $0.56 per share.
A discussion of this announcement will be webcast today at 10 a.m.
CDT, and a replay will be available for approximately one week. To
access the audio presentation, go to www.snapon.com, click on the
Investor Information tab at the top of the page and then on
Presentations in the menu to the left. There you will see the link to
the call. Additional detail on the quarter is also available in the
analyst bulletin located on the Snap-on Web site.
Snap-on Incorporated is a leading global innovator, manufacturer
and marketer of tool, diagnostic and equipment solutions for
professional tool users. Product lines include hand and power tools,
diagnostics and shop equipment, tool storage, diagnostics software and
other solutions for vehicle-service, industrial, government and
agricultural customers, and commercial applications, including
construction and electrical. Products are sold through its franchised
dealer van, company-direct sales and distributor channels, as well as
over the Internet. Founded in 1920, Snap-on is a $2+ billion, S&P 500
company headquartered in Kenosha, Wisconsin, and employs approximately
13,200 people worldwide.
Statements in this news release that are not historical facts,
including statements (i) that include the words "expects," "targets,"
"anticipates" or "encouraged by" or similar words that reference
Snap-on or its management; (ii) specifically identified as
forward-looking; or (iii) describing Snap-on's or management's future
outlook, plans, estimates, objectives or goals, are forward-looking
statements. Snap-on or its representatives may also make similar
forward-looking statements from time to time orally or in writing.
Snap-on cautions the reader that these statements are subject to
risks, uncertainties or other factors that could cause (and in some
cases have caused) actual results to differ materially from those
described in any such statement. Those important factors include the
validity of the assumptions set forth above and the timing and
progress with which Snap-on can continue to achieve further cost
benefits from its restructuring and other Operational Fitness
initiatives; Snap-on's capability to retain and attract dealers, and
effectively implement new programs; the capture of new business, the
success of new products and other Profitable Growth initiatives; and
Snap-on's ability to withstand external negative factors including
terrorist disruptions on business; consequences of the change in
public accounting firms or a change in regulatory reporting
requirements; changes in trade, monetary and fiscal policies, laws and
regulations, or other activities of governments or their agencies; and
the absence of significant changes in inflation, the current
competitive environment, energy supply or pricing, legal proceedings,
supplier disruptions, currency fluctuations or the material worsening
of economic and political situations around the world.
These factors may not constitute all factors that could cause
actual results to differ materially from those discussed in any
forward-looking statement. Snap-on operates in a continually changing
business environment and new factors emerge from time to time. Snap-on
cannot predict such factors nor can it assess the impact, if any, of
such factors on Snap-on's financial position or its results of
operations. Accordingly, forward-looking statements should not be
relied upon as a prediction of actual results. Snap-on disclaims any
responsibility to update any forward-looking statement provided in
this news release.
SNAP-ON INCORPORATED
Consolidated Statements of Earnings
(Amounts in millions, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
-------------------- -------------------
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
2002 2001 2002 2001
--------- --------- --------- ---------
Snap-on Dealer Group $ 240.0 $ 259.6 $ 770.6 $ 777.3
Commercial and
Industrial Group 262.4 248.5 789.0 783.8
--------- --------- --------- ---------
Net sales 502.4 508.1 1,559.6 1,561.1
Cost of goods sold (274.6) (285.7) (844.7) (855.7)
Operating expenses (197.2) (199.0) (597.9) (607.4)
--------- --------- --------- ---------
30.6 23.4 117.0 98.0
Net finance income 10.3 7.7 26.4 27.7
Restructuring and other
non-recurring charges (1.6) (18.0) (6.4) (32.4)
Interest expense (6.9) (9.1) (22.2) (27.2)
Other income (expense)
- net (2.3) (0.8) (5.3) (0.5)
--------- --------- --------- ---------
Earnings before income taxes 30.1 3.2 109.5 65.6
Income taxes 10.9 2.6 39.4 26.7
--------- --------- --------- ---------
Earnings before
cumulative effect $ 19.2 $ 0.6 $ 70.1 $ 38.9
Cumulative effect of a
change in accounting
principle, net of tax - - 2.8 (2.5)
--------- --------- --------- ---------
Net earnings $ 19.2 $ 0.6 $ 72.9 $ 36.4
========= ========= ========= =========
Earnings per share
- basic and diluted:
Earnings before
cumulative effect $ 0.33 $ 0.01 $ 1.20 $ 0.67
Cumulative effect of
a change in accounting
principle, net of tax - - 0.05 (0.05)
--------- --------- --------- ---------
Net earnings $ 0.33 $ 0.01 $ 1.25 $ 0.62
========= ========= ========= =========
Weighted-average shares
outstanding:
Basic 58.4 58.0 58.2 57.9
Effect of dilutive options 0.3 0.2 0.3 0.2
--------- --------- --------- ---------
Diluted 58.7 58.2 58.5 58.1
========= ========= ========= =========
SNAP-ON INCORPORATED
Consolidated Balance Sheets
(Amounts in millions)
September 28, December 29,
2002 2001
-----------------------------
(Unaudited)
Assets
Cash and cash equivalents $6.9 $6.7
Accounts receivable - net of allowances 591.8 615.2
Inventories 405.9 375.2
Prepaid expenses and other assets 128.1 142.3
------------ ------------
Total current assets 1,132.7 1,139.4
Property and equipment - net 327.8 327.7
Deferred income tax benefits 28.9 27.7
Goodwill - net 353.6 331.2
Other intangibles - net 63.7 60.7
Other assets 90.5 87.6
------------ ------------
Total Assets $1,997.2 $1,974.3
============ ============
Liabilities
Accounts payable $186.2 $141.2
Notes payable and current maturities of
long-term debt 103.0 29.1
Accrued compensation 59.0 58.7
Dealer deposits 41.2 42.0
Deferred subscription revenue 43.9 45.0
Accrued restructuring reserves 6.8 23.1
Other accrued liabilities 198.5 210.3
------------ ------------
Total current liabilities 638.6 549.4
Long-term debt 304.8 445.5
Deferred income taxes 32.9 24.7
Retiree health care benefits 93.8 92.7
Pension liability 53.7 54.5
Other long-term liabilities 25.9 31.7
------------ ------------
Total Liabilities $1,149.7 $1,198.5
Shareholders' Equity
Common stock - $1 par value $66.9 $66.8
Additional paid-in capital 48.2 108.0
Retained earnings 1,045.7 1,014.7
Accumulated other comprehensive
income (loss) (90.8) (120.6)
Grantor stock trust at fair market value (126.0) (203.0)
Treasury stock at cost (96.5) (90.1)
------------ ------------
Total Shareholders' Equity $847.5 $775.8
------------ ------------
Total Liabilities and Shareholders'
Equity $1,997.2 $1,974.3
============ ============
SNAP-ON INCORPORATED
Notes to Consolidated Financial Statements
(unaudited)
1. Snap-on has prepared the following supplemental financial data
to provide readers with additional information and a reconciliation of
the amounts presented and discussed in this press release. The
supplemental data illustrates the impact on Snap-on's results of
operations of the restructuring, non-recurring (including
restructuring-related costs) and other non-comparable charges
(collectively, "special charges") incurred by Snap-on in the
third-quarter and nine-month periods of 2002 and 2001. This
supplemental financial data has been provided to assist readers in
better understanding the impact of such special charges on the
company's results of operations.
Third Quarter Ended Third Quarter Ended
September 28, 2002 September 29, 2001
----------------------------- -----------------------------
(Amounts in Before Before
millions, As Special Special As Special Special
except EPS)Reported Charges Charges Reported Charges Charges
--------- --------- --------- --------- --------- ---------
Net sales $ 502.4 $ - $502.4 $ 508.1 $ - $ 508.1
Cost of
goods sold (274.6) - (274.6) (285.7) (12.4) (273.3)
Operating
expenses (197.2) - (197.2) (199.0) (4.0) (195.0)
--------- --------- --------- --------- --------- ---------
30.6 - 30.6 23.4 (16.4) 39.8
Net finance
income 10.3 - 10.3 7.7 - 7.7
Restructuring
and other
non-recurring
charges (1.6) (1.6) - (18.0) (18.0) -
Interest
expense (6.9) - (6.9) (9.1) - (9.1)
Other income
(expense)
- net (2.3) - (2.3) (0.8) - (0.8)
--------- --------- --------- --------- --------- ---------
Earnings
(loss)
before
income
taxes 30.1 (1.6) 31.7 3.2 (34.4) 37.6
Income tax
expense
(benefit) 10.9 (0.5) 11.4 2.6 (11.1) 13.7
--------- --------- --------- --------- --------- ---------
Net earnings
(loss) $ 19.2 $ (1.1) $ 20.3 $ 0.6 $ (23.3) $ 23.9
========= ========= ========= ========= ========= =========
Earnings per
share -
diluted $ 0.33 $ (0.02) $ 0.35 $ 0.01 $ (0.40) $ 0.41
Snap-on incurred $1.6 million in restructuring-related costs
during the third quarter of 2002 for employee and equipment relocation
and professional fees related to its previously announced 2001
restructuring initiatives.
In the third quarter of 2001, Snap-on recorded $18.0 million in
restructuring and other non-recurring charges related to the closure
of 17 facilities. The restructuring and other non-recurring charges
included $12.4 million for severance associated with the elimination
of 358 positions, $4.8 million for non-cancelable lease agreements and
related facility asset write-downs, $0.5 million for legal and
professional services, and $0.3 million for other exit costs. Snap-on
recorded $12.4 million of non-recurring charges in cost of goods sold,
including $2.1 million for inventory write-downs associated with
restructuring activities and $10.3 million for additional inventory
write-downs and warranty costs associated with the company's exit of
an unprofitable segment of the emissions-testing business in the
fourth quarter of 2000. Snap-on also recorded non-comparable charges
of $4.0 million in operating expenses for emissions-related bad debts.
SNAP-ON INCORPORATED
Notes to Consolidated Financial Statements
(unaudited)
Nine Months Ended Nine Months Ended
September 28, 2002 September 29, 2001
---------------------------- -----------------------------
(Amounts in Before Before
millions, As Special Special As Special Special
except EPS) Reported Charges Charges Reported Charges Charges
--------- -------- --------- --------- --------- ---------
Net sales $1,559.6 $ - $1,559.6 $1,561.1 $ - $1,561.1
Cost of
goods sold (844.7) - (844.7) (855.7) (13.9) (841.8)
Operating
expenses (597.9) (2.6) (595.3) (607.4) (8.6) (598.8)
--------- -------- --------- --------- -------- --------
117.0 (2.6) 119.6 98.0 (22.5) 120.5
Net finance
income 26.4 - 26.4 27.7 - 27.7
Restructuring
and other
non-recurring
charges (6.4) (6.4) - (32.4) (32.4) -
Interest
expense (22.2) - (22.2) (27.2) - (27.2)
Other income
(expense)
- net (5.3) - (5.3) (0.5) - (0.5)
--------- --------- --------- --------- -------- --------
Earnings
(loss)
before income
taxes 109.5 (9.0) 118.5 65.6 (54.9) 120.5
Income tax
expense
(benefit) 39.4 (3.2) 42.6 26.7 (17.2) 43.9
--------- --------- --------- --------- -------- --------
Earnings
(loss)
before
cumulative
effect $ 70.1 $ (5.8) $ 75.9 $ 38.9 $(37.7) $ 76.6
Cumulative
effect of a
change in
accounting
principle,
net of tax 2.8 - 2.8 (2.5) - (2.5)
--------- --------- --------- --------- -------- --------
Net earnings
(loss) $ 72.9 $ (5.8) $ 78.7 $ 36.4 $(37.7) $ 74.1
========= ========= ========= ========= ======== ========
Earnings per share - diluted:
Earnings
(loss)
before
cumulative
effect $ 1.20 $ (0.10) $ 1.30 $ 0.67 $(0.65) $ 1.32
Cumulative
effect,
net of
tax 0.05 - 0.05 (0.05) - (0.05)
--------- --------- --------- --------- -------- --------
Net earnings
(loss) $ 1.25 $ (0.10) $ 1.35 $ 0.62 $(0.65) $ 1.27
========= ========= ========= ========= ======== ========
Snap-on incurred special charges of $9.0 million during the first
nine months of 2002, including $6.4 million of restructuring and other
non-recurring charges for employee and equipment relocation costs and
professional fees associated with completing its 2001 restructuring
activities and for costs associated with the 2002 resignation of
Snap-on's former chief financial officer. Operating expenses for the
first nine months of 2002 include $2.6 million of bad debt expense for
the write-down of a receivable related to the closure of auto service
centers associated with a major retailer's bankruptcy.
In the first quarter of 2002, Snap-on recorded a cumulative effect
of a change in accounting principle transition adjustment of $2.8
million, on both a pretax and after-tax basis, from the recognition of
negative goodwill as prescribed by Statement of Financial Accounting
Standards (SFAS) No. 142, "Goodwill and Other Intangible Assets."
Snap-on adopted SFAS No. 142 at the beginning of its 2002 fiscal year.
Snap-on recorded $32.4 million in restructuring and other
non-recurring charges in the first nine months of 2001, including
$24.0 million for restructuring actions and $8.4 million in
non-recurring charges. The $24.0 million restructuring charge related
to the closure of 26 facilities and included $13.5 million for
severance costs associated with the elimination of 456 positions, $9.5
million for non-cancelable lease agreements and related facility asset
write-downs, $0.5 million for legal and professional services, and
$0.5 million for other exit costs. The non-recurring charges of $8.4
million represent management transition costs associated with the
April 2001 retirement of Snap-on's former president and chief
executive officer and the appointment of Dale F. Elliott as successor
to this position. Snap-on recorded additional charges of $22.5 million
in the first nine months of 2001, including non-recurring charges of
$12.4 million and non-comparable charges of $10.1 million. The
non-recurring charges of $12.4 million (included in cost of goods
sold) were for inventory write-downs and warranty costs associated
with restructuring activities and the exit of an unprofitable segment
of the emissions-testing business. The $10.1 million of non-comparable
charges included $1.5 million in cost of goods sold and $8.6 million
in operating expenses, primarily related to the termination of a
European supplier arrangement and for emissions-related bad debts.
SNAP-ON INCORPORATED
Notes to Consolidated Financial Statements
(unaudited)
In accordance with the provisions of SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities," Snap-on recorded a
transition adjustment at the beginning of its 2001 fiscal year to
recognize its derivative instruments at fair value and to recognize
the difference between the carrying values and fair values of related
hedged assets upon adoption. The cumulative effect of this transition
adjustment was to decrease reported net earnings in the first quarter
of 2001 by $2.5 million after tax related to a hedge strategy that did
not qualify for hedge accounting under SFAS No. 133.
2. Snap-on adopted SFAS No. 142, "Goodwill and Other Intangible
Assets," at the beginning of its 2002 fiscal year. Snap-on completed
the transitional goodwill impairment evaluation required by this
standard during the second quarter of 2002, the results of which
indicated that the carrying values of goodwill and other intangibles
were not impaired.
Snap-on recorded a cumulative effect of a change in accounting
principle transition adjustment that increased net earnings in the
first quarter of 2002 by $2.8 million, on both a pretax and after-tax
basis, from the recognition of negative goodwill as prescribed by SFAS
No. 142.
Snap-on ceased amortizing goodwill and certain other intangibles
at the beginning of its 2002 fiscal year as required by SFAS No. 142.
The following is a reconciliation of earnings before cumulative effect
of a change in accounting principle, net earnings and earnings per
share for the third quarter and nine months ended September 29, 2001,
reflecting the impact of this standard on prior-year reported results.
Third Quarter Nine Months
(Amounts in millions, except EPS) Ended Ended
September 29, 2001 September 29, 2001
------------------ ------------------
Earnings before cumulative effect of
a change in accounting principle as
reported: $0.6 $38.9
Goodwill amortization, net of tax 3.0 8.9
Trademark amortization, net of tax 0.2 0.6
-------- --------
Adjusted earnings before cumulative
effect item $3.8 $48.4
======== ========
Net earnings as reported: $0.6 $36.4
Goodwill amortization, net of tax 3.0 8.9
Trademark amortization, net of tax 0.2 0.6
-------- --------
Adjusted net earnings $3.8 $45.9
======== ========
Earnings per share before cumulative
effect of a change in accounting
principle as reported:
Basic $0.01 $0.67
Diluted 0.01 0.67
Adjusted earnings per share before
cumulative effect item:
Basic $0.06 $0.83
Diluted 0.06 0.83
Net earnings per share as reported:
Basic $0.01 $0.62
Diluted 0.01 0.62
Adjusted earnings per share:
Basic $0.06 $0.78
Diluted 0.06 0.78
CONTACT: Snap-on Incorporated
Media:
Richard Secor, 262/656-5561
or
Investors:
William Pfund, 262/656-6488
www.snapon.com