Exhibit 99
Snap-on Reports Sales Increase of 4.6% and EPS of $0.30
for the Third Quarter; Results include $0.15 per Share of
Costs to Close Two Facilities, Strong Cash Flow Continues
KENOSHA, Wis.--(BUSINESS WIRE)--Oct. 22, 2003--Snap-on
Incorporated (NYSE:SNA), a global leader in tools, diagnostics and
equipment, today announced third-quarter results for the period ended
September 27, 2003.
-- Net sales were $525.6 million in the third quarter of 2003, an
increase of 4.6% compared with $502.4 million in the prior
year. A 5.7% increase in sales volume in North American
franchised dealer operations was largely offset by a continued
decline in equipment and large platform-based diagnostics.
Sales of tools for industrial and commercial applications
worldwide were flat. Favorable currency translation
contributed 3.9% to the increase.
-- Net earnings were $17.7 million, or $0.30 per diluted share,
for the third quarter of 2003 compared with net earnings of
$19.2 million, or $0.33 per diluted share, in the prior year.
Third-quarter 2003 earnings include the after-tax impact of
$8.7 million, or $0.15 per share, in costs associated with the
previously announced closure of two hand tool manufacturing
facilities, partially offset by $0.05 per share from a lower
tax rate in the quarter. Foreign currency effects on diluted
earnings per share were negligible in the quarter.
-- Cash flow from operating activities was $84.4 million in the
third quarter of 2003 compared with $63.4 million in the prior
year. Free cash flow, comprising cash flow from operating
activities less capital expenditures of $5.7 million, was
$78.7 million, exceeding net earnings for the period.
-- Snap-on's balance sheet continued to strengthen in the third
quarter of 2003. Net debt, comprising $335.7 million in total
debt less $85.4 million of cash, was $250.3 million at
third-quarter end, a reduction of $150 million compared with a
year ago.
"We are continuing to see improvements from our Driven to
Deliver(TM) strategic initiatives reflected in our financial results.
The strong cash flow generation and increasing sales in our franchised
dealer business are positive indicators of our progress to date, but
we believe there are still clear opportunities for further
improvements," said Dale F. Elliott, chairman and chief executive
officer. "In spite of the challenges that the weak economies in North
America and Europe have presented for our capital goods and industrial
businesses, we expect to see further positive results from our Driven
to Deliver investments and activities going forward."
Third-Quarter Results
Net sales were $525.6 million in the third quarter of 2003, an
increase of $23.2 million, or 4.6%, compared with $502.4 million in
the third quarter of 2002. Sales increases in the worldwide franchised
dealer operations and in Snap-on's facilitation business for new
vehicle dealerships were largely offset by decreases in equipment and
large platform-based diagnostics. Sales of tools for industrial and
commercial applications worldwide were flat. Favorable currency
translation was $19.7 million of the third-quarter increase, or 3.9%.
Net earnings were $17.7 million, or $0.30 per diluted share, in
the third quarter of 2003 compared with $19.2 million, or $0.33 per
diluted share, in the third quarter of 2002. Third-quarter 2003
earnings include the impact from $13.3 million of pretax costs
associated with the previously announced closure of two hand tool
manufacturing facilities (principally the recognition of accelerated
pension and post-retirement medical plan expenses), as well as $0.7
million pretax for other continuous improvement actions, partially
offset by the favorable impact of a lower tax rate in the third
quarter 2003. The effective tax rate is expected to be 35% for the
fourth quarter of 2003. Currency effects on diluted earnings per share
were negligible. The third quarter of 2002 included $1.6 million
pretax for ongoing continuous improvement actions and
restructuring-related transition actions.
The benefits of higher sales in the franchised dealer business,
improved price realization and savings from prior restructuring
activities were offset by unfavorable volume in the worldwide
equipment businesses, resulting from the continued weak marketplace
demand for capital goods and the near-term impact associated with a
realignment of the company's North American equipment marketing and
distribution organization. The company's operating earnings were also
impacted by $5.6 million for higher year-over-year pension, other
retirement and insurance costs. In addition, a LIFO benefit of $5.1
million, reflecting the progress associated with Snap-on's inventory
reduction initiative, offset lower manufacturing cost absorption and
other inventory-related costs associated with efforts to increase
inventory turnover in a weak sales environment.
Net finance income was essentially flat at $10.0 million in the
third quarter of 2003 compared with $10.3 million in the prior year,
on flat originations volume. Substantially lower year-over-year debt
levels contributed to a $1.1 million decrease in Snap-on's interest
expense for the quarter.
Segment Results for the Third Quarter
Sales in the worldwide Snap-on Dealer Group were $251.6 million in
the third quarter of 2003, an increase of $8.3 million, or 3.4%,
compared with $243.3 million in the third quarter of 2002. For the
quarter, sales were up 5.7% in the North American franchised dealer
business, in line with the growth in sales recorded by the company's
franchised dealers to end-users. The growth in sales through
franchised dealers was largely offset by lower sales volume of large,
platform-based diagnostics equipment sold through the "tech rep" sales
organization, which declined significantly year over year, partially
reflecting continued weak market demand. Sales were up in
international markets due to favorable currency translation.
Third-quarter 2003 segment sales include $5.3 million of favorable
currency translation.
Operating earnings for the Dealer Group were $8.2 million compared
with $11.7 million a year ago. Benefits from the higher sales volume,
favorable pricing realization and prior continuous improvement
actions, were more than offset by $11.5 million in costs absorbed by
the Dealer Group associated with the previously announced closure of
two hand tool facilities. In addition, $2.6 million of higher
year-over-year costs for pension, other retirement and insurance were
incurred.
In the Commercial and Industrial Group, sales were $264.6 million
in the third quarter of 2003, up $11.6 million, or 4.6%, compared with
$253.0 million in the third quarter of 2002. Third-quarter 2003
segment sales include $13.1 million due to favorable currency
translation. Equipment sales continued to reflect the depressed
economic conditions and the associated impact on sales of capital
goods equipment to vehicle repair shops in North America and Europe.
The equipment weakness was partially offset by growth in the company's
facilitation business. Sales of tools in the industrial and commercial
marketplace worldwide were flat. Sales to federal government entities
increased and more than offset the continued decline in sales to
states and local municipalities.
The ramp-up of the Technical Automotive Group (TAG) continued in
the third quarter, following its second-quarter launch, with sales,
sales leads and margins increasing sequentially compared with the
second quarter of 2003, despite a traditional seasonal downturn and
the difficult economy. As expected, the change in distribution
continued to have a near-term negative impact on year-over-year
equipment results. The TAG direct sales group was created to enhance
Snap-on's existing equipment distribution network and improve the
long-term operating margin in that business. Snap-on continues to
expect improved equipment sales and profitability trends in the fourth
quarter of 2003, and on into 2004, as a result of this action.
Operating earnings for the Commercial and Industrial Group were
$3.8 million in the third quarter of 2003 compared with $9.2 million
in the prior year, and up sequentially from $0.8 million in the second
quarter of 2003. Segment results for the quarter include $1.8 million
of costs absorbed by the Commercial and Industrial Group related to
the previously mentioned plant closings. Savings from prior
restructuring and ongoing continuous improvement actions were more
than offset by the margin impact from an unfavorable sales mix and
lower sales volumes, associated with the weak economy and the effect
of the TAG ramp-up, as well as higher expenses associated with
pension, other retirement and insurance costs.
Sales in the Diagnostics and Information Group were $79.5 million
in the third quarter of 2003, down 6.5% compared with $85.0 million a
year ago, including $1.3 million of favorable currency translation in
third-quarter 2003. The decline was principally due to lower
intersegment sales, with the growth of handheld diagnostics offset by
the decline in large platform-based diagnostics (products primarily
sold through the Dealer Group's tech rep organization) and the impact
resulting from the transfer of certain European equipment production
to the Commercial and Industrial Group, which reduced intersegment
sales for these products.
Operating earnings for the Diagnostics and Information Group were
$9.1 million in the third quarter of 2003 compared with $8.1 million
in the prior year. Savings from prior restructuring initiatives and
the increased sales of handheld diagnostics offset the impact of lower
volume on large platform-based products.
Nine-Month Results
For the nine months of 2003, net sales were $1,633.9 million
compared with $1,559.6 million in the first nine months of last year.
Net earnings were $61.4 million, or $1.05 per diluted share, compared
with $72.9 million, or $1.25 per diluted share, in 2002. Included in
2002 earnings is a cumulative effect after-tax gain of $2.8 million,
or $0.05 per diluted share, from the adoption of SFAS No. 142.
In the Dealer Group, nine-month sales were $797.8 million in 2003
compared with $775.9 million in 2002, and operating earnings were
$55.4 million in 2003 compared with $64.6 million a year ago. In the
Commercial and Industrial Group, nine-month sales were $819.6 million
in 2003 compared with $770.1 million in 2002, and operating earnings
were $10.7 million in 2003 compared with $28.6 million a year ago. In
the Diagnostics and Information Group, nine-month sales were $231.8
million in 2003 compared with $255.5 million in 2002, and operating
earnings were $17.0 million in 2003 compared with $17.4 million a year
ago.
Cash Flow
Cash flow from operating activities was $84.4 million in the third
quarter of 2003 compared with $63.4 million in 2002. For the nine
months, cash flow from operating activities was $140.0 million
compared with $125.8 million a year ago.
After payments to shareholders in the form of dividends and share
repurchases, the priority has been to use cash flow to lower the
company's net debt position. The ratio of total net debt (total debt
less cash and cash equivalents) to total invested capital (total net
debt plus shareholders' equity) strengthened to 21.2% at the end of
the 2003 third quarter from 29.2% at the end of fiscal-year 2002,
reflecting both a decrease in net debt and the increase in
shareholders' equity, including $79.3 million from currency
translation. This is a significant improvement in the ratio from the
32.1% a year ago, and exceeds the company's long-term target range of
30%-35%.
Another important priority for Snap-on has been to improve its
returns on capital by making more effective use of its investment in
working capital. The company's target is to improve its working
investment (accounts receivable plus inventories less accounts
payable) turnover to four turns by the end of 2005. Working investment
at the end of the third quarter of 2003 was $751.0 million compared
with $755.2 million at year-end 2002, which includes an increase of
$50.1 million due to currency translation year to date. As of
third-quarter-end 2003, Snap-on achieved 2.8 turns in working
investment compared with 2.6 turns for the comparable period a year
ago. One important component of working investment, inventory turns,
improved to 3.3 turns (based on a rolling 4-quarters average) compared
with 2.8 turns for the comparable period a year ago.
Outlook
Snap-on will continue to emphasize the consistent and widespread
application of its Driven to Deliver strategic framework, including
the implementation of performance improvement initiatives. The company
remains committed to seeking opportunities for process improvements
that will enhance competitiveness and customer responsiveness
throughout its global organization.
Snap-on expects to record in the fourth quarter of 2003
approximately $4 million to $5 million of costs associated with the
two aforementioned plant closings, primarily for severance and
transition expenses, and approximately $8 million to $9 million in the
first quarter of 2004. Savings from these actions are expected to be
approximately $12 million annually, beginning in 2004.
For the remainder of the year, Snap-on expects continued steady
growth in demand for tools and handheld diagnostics by vehicle-service
technicians. Additionally, while there are indications of improving
trends in the overall general economy, these have not yet been
reflected in sales improvements of equipment in the industrial and
capital goods sectors in which Snap-on participates. As a result of
its nine-month results and these marketplace assumptions, Snap-on
expects full-year 2003 reported earnings to be in the range of $1.50
to $1.55 per diluted share.
A discussion of this announcement will be Webcast at 9:00 a.m. CDT
today, and supplemental materials are available on the Snap-on
Incorporated Web site. An audio replay will be available on the Web
site for at least one week following the call. 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
about Snap-on is also available 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
12,700 people worldwide.
Safe Harbor: Statements in this news release that are not
historical facts, including statements (i) that include the words
"expects," "believes," "assumes," or "anticipates," 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 and bases underlying such statements and
the timing and progress with which Snap-on can continue to achieve
savings from its cost reduction and other Operational Fitness
initiatives; Snap-on's capability to retain and attract dealers and
effectively implement new programs; its ability to capture new
business; the success of new products and other Profitable Growth
initiatives; Snap-on's ability to withstand external negative factors
including terrorist disruptions on business; changes in trade,
monetary and fiscal policies, regulatory reporting requirements, laws
and regulations, or other activities of governments or their agencies,
including military actions and such aftermath that might occur;
disruption arising from planned facility closures; Snap-on's ability
to grow the U.S. dealer network; differences between the actual and
estimated return on pension plan assets; 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. Any opinions, estimates or forecasts regarding
Snap-on performance made by analysts are theirs alone and do not
represent the opinions, forecasts or predictions of Snap-on or its
management, nor does Snap-on endorse or otherwise comment on such
forecasts.
SNAP-ON INCORPORATED
Consolidated Statements of Earnings
(Amounts in millions, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
--------------------------- ---------------------------
September 27, September 28, September 27, September 28,
2003 2002 2003 2002
------------- ------------- ------------- -------------
Net sales $525.6 $502.4 $1,633.9 $1,559.6
Cost of goods
sold (303.8) (274.6) (920.6) (844.7)
------------- ------------- ------------- -------------
Gross profit 221.8 227.8 713.3 714.9
Operating
expenses (200.7) (198.8) (630.2) (604.3)
Net finance
income 10.0 10.3 31.7 26.4
------------- ------------- ------------- -------------
Operating
earnings 31.1 39.3 114.8 137.0
Interest
expense (5.8) (6.9) (18.2) (22.2)
Other income
(expense) -
net (2.4) (2.3) (6.5) (5.3)
------------- ------------- ------------- -------------
Earnings before
income taxes 22.9 30.1 90.1 109.5
Income tax
expense (5.2) (10.9) (28.7) (39.4)
------------- ------------- ------------- -------------
Earnings before
cumulative
effect 17.7 19.2 61.4 70.1
Cumulative
effect of a
change in
accounting
principle, net
of tax - - - 2.8
------------- ------------- ------------- -------------
Net earnings $17.7 $19.2 $61.4 $72.9
============= ============= ============= =============
Earnings per
share - basic
and diluted:
Earnings before
cumulative
effect $0.30 $0.33 $1.05 $1.20
Cumulative
effect of a
change in
accounting
principle,
net of tax - - - 0.05
------------- ------------- ------------- -------------
Net earnings $0.30 $0.33 $1.05 $1.25
============= ============= ============= =============
Weighted-
average shares
outstanding:
Basic 58.3 58.4 58.2 58.2
Effect of
dilutive
options 0.1 0.3 0.2 0.3
------------- ------------- ------------- -------------
Diluted 58.4 58.7 58.4 58.5
============= ============= ============= =============
SNAP-ON INCORPORATED
Net Sales and Operating Earnings by Reportable Segment
(Amounts in millions)
(unaudited)
Three Months Ended Nine Months Ended
--------------------------- ---------------------------
September 27, September 28, September 27, September 28,
2003 2002 2003 2002
------------- ------------- ------------- -------------
Net sales to
external
customers
Snap-on Dealer
Group $244.9 $236.5 $777.6 $758.4
Commercial and
Industrial
Group 236.0 224.2 729.5 680.8
Diagnostics and
Information
Group 44.7 41.7 126.8 120.4
------------- ------------- ------------- -------------
Total net sales
to external
customers $525.6 $502.4 $1,633.9 $1,559.6
============= ============= ============= =============
Intersegment
sales
Snap-on Dealer
Group $6.7 $6.8 $20.2 $17.5
Commercial and
Industrial
Group 28.6 28.8 90.1 89.3
Diagnostics and
Information
Group 34.8 43.3 105.0 135.1
------------- ------------- ------------- -------------
Total
intersegment
sales $70.1 $78.9 $215.3 $241.9
============= ============= ============= =============
Total net sales
Snap-on Dealer
Group $251.6 $243.3 $797.8 $775.9
Commercial and
Industrial
Group 264.6 253.0 819.6 770.1
Diagnostics and
Information
Group 79.5 85.0 231.8 255.5
------------- ------------- ------------- -------------
Segment net
sales 595.7 581.3 1,849.2 1,801.5
Intersegment
eliminations (70.1) (78.9) (215.3) (241.9)
------------- ------------- ------------- -------------
Total
consolidated
net sales $525.6 $502.4 $1,633.9 $1,559.6
============= ============= ============= =============
Operating
earnings
Snap-on Dealer
Group $8.2 $11.7 $55.4 $64.6
Commercial and
Industrial
Group 3.8 9.2 10.7 28.6
Diagnostics and
Information
Group 9.1 8.1 17.0 17.4
------------- ------------- ------------- -------------
Segment
operating
earnings 21.1 29.0 83.1 110.6
Net finance
income 10.0 10.3 31.7 26.4
------------- ------------- ------------- -------------
Operating
earnings 31.1 39.3 114.8 137.0
Interest
expense (5.8) (6.9) (18.2) (22.2)
Other income
(expense) -
net (2.4) (2.3) (6.5) (5.3)
------------- ------------- ------------- -------------
Earnings before
income taxes $22.9 $30.1 $90.1 $109.5
============= ============= ============= =============
Segment net sales are defined as total net sales, including both
net sales to external customers and intersegment sales, before
elimination of intersegment activity. For 2003 reporting, segment
operating earnings (for all periods presented) are defined as segment
net sales less cost of goods sold and operating expenses, including
applicable restructuring and other non-recurring charges. Certain
prior-year reclassifications have been made to conform to the 2003
management reporting structure.
SNAP-ON INCORPORATED
Consolidated Balance Sheets
(Amounts in millions)
September 27, December 28,
2003 2002
------------- ------------
(unaudited)
Assets
Cash and cash equivalents $85.4 $18.4
Accounts receivable - net of
allowances 561.2 556.2
Inventories - net 365.2 369.9
Prepaid expenses and other assets 119.1 106.5
------------- ------------
Total current assets 1,130.9 1,051.0
Property and equipment - net 325.5 330.2
Deferred income tax benefits 61.5 60.9
Goodwill - net 397.5 366.4
Other intangibles - net 68.6 65.7
Other assets 123.9 119.9
------------- ------------
Total Assets $2,107.9 $1,994.1
============= ============
Liabilities
Accounts payable $175.4 $170.9
Notes payable and current maturities
of long-term debt 31.8 56.4
Accrued benefits 44.1 40.1
Accrued compensation 43.3 44.4
Dealer deposits 48.4 46.1
Deferred subscription revenue 31.8 42.5
Income taxes 35.9 29.8
Other accrued liabilities 147.8 122.2
------------- ------------
Total current liabilities 558.5 552.4
Long-term debt 303.9 304.3
Deferred income taxes 35.4 33.6
Retiree health care benefits 98.4 94.0
Pension liability 139.6 136.6
Other long-term liabilities 44.0 42.8
------------- ------------
Total Liabilities $1,179.8 $1,163.7
Shareholders' Equity
Common stock - $1 par value $66.9 $66.9
Additional paid-in capital 72.0 72.9
Retained earnings 1,081.9 1,064.2
Accumulated other comprehensive
income (loss) (43.6) (123.8)
Grantor stock trust at fair market
value (138.8) (147.5)
Treasury stock at cost (110.3) (102.3)
------------- ------------
Total Shareholders' Equity $928.1 $830.4
------------- ------------
Total Liabilities and
Shareholders' Equity $2,107.9 $1,994.1
============= ============
SNAP-ON INCORPORATED
Supplemental Balance Sheet Information
(Amounts in millions)
(unaudited)
September 27, September 28,
2003 2002 Change
------------- ------------- -------
Accounts receivable
Trade accounts receivable $519.3 $506.4 $12.9
Installment receivables 49.2 41.3 7.9
Other accounts receivable 38.3 39.5 (1.2)
------------- ------------- -------
Total $606.8 $587.2 $19.6
Allowance for doubtful accounts (45.6) (39.9) (5.7)
------------- ------------- -------
Total accounts receivable -
net $561.2 $547.3 $13.9
============= ============= =======
Loss reserves as a % of receivables 7.5% 6.8%
Inventory
Raw materials $90.9 $92.4 $(1.5)
Work in process 47.0 46.2 0.8
Finished goods 316.8 362.7 (45.9)
Excess of current cost over LIFO
cost (89.5) (95.4) 5.9
------------- ------------- -------
Total inventory - net $365.2 $405.9 $(40.7)
============= ============= =======
SNAP-ON INCORPORATED
Consolidated Statements of Cash Flows
(Amounts in millions)
(unaudited)
Three Months Ended
----------------------------
September 27, September 28,
2003 2002
------------- -------------
Operating activities
Net earnings $17.7 $19.2
Adjustments to reconcile net earnings to
net cash
provided (used) by operating activities:
Depreciation 12.9 12.1
Amortization of intangibles 0.7 0.5
Deferred income tax provision 2.6 3.4
Gain on sale of assets - (0.2)
Loss (gain) on mark to market for cash
flow hedges 0.1 (0.9)
Changes in operating assets and liabilities,
net of effects of acquisitions:
(Increase) decrease in receivables 16.8 38.9
(Increase) decrease in inventories 19.7 6.3
(Increase) decrease in prepaid and other
assets 6.4 20.4
Increase (decrease) in accounts payable (0.3) (16.6)
Increase (decrease) in accruals and other
liabilities 7.8 (19.7)
------------- -------------
Net cash provided by operating activities 84.4 63.4
Investing activities
Capital expenditures (5.7) (11.0)
Proceeds from disposal of property and
equipment 0.2 2.7
------------- -------------
Net cash used in investing activities (5.5) (8.3)
Financing activities
Payment of long-term debt - (0.3)
Increase in long-term debt - 2.1
Net increase (decrease) in short-term
borrowings 1.0 (42.7)
Purchase of treasury stock (4.3) -
Proceeds from stock purchase and option
plans 1.6 0.7
Cash dividends paid (14.5) (14.0)
------------- -------------
Net cash used in financing activities (16.2) (54.2)
Effect of exchange rate changes on cash (0.1) (0.2)
------------- -------------
Increase in cash and cash equivalents 62.6 0.7
Cash and cash equivalents at beginning of
period 22.8 6.2
------------- -------------
Cash and cash equivalents at end of
period $85.4 $6.9
============= =============
Supplemental cash flow disclosures
Cash paid for interest $6.9 $8.9
Cash paid for income taxes $5.0 $1.5
SNAP-ON INCORPORATED
Consolidated Statements of Cash Flows
(Amounts in millions)
(unaudited)
Nine Months Ended
----------------------------
September 27, September 28,
2003 2002
------------- -------------
Operating activities
Net earnings $61.4 $72.9
Adjustments to reconcile net earnings to
net cash
provided (used) by operating activities:
Cumulative effect of a change in
accounting
principle, net of tax - (2.8)
Depreciation 41.9 37.8
Amortization of intangibles 1.6 1.3
Deferred income tax provision (benefit) (5.2) 26.3
Gain on sale of assets - (0.5)
Loss (gain) on mark to market for cash
flow hedges 0.8 (1.6)
Changes in operating assets and liabilities,
net of effects of acquisitions:
(Increase) decrease in receivables 27.7 40.6
(Increase) decrease in inventories 29.5 (19.0)
(Increase) decrease in prepaid and other
assets (23.0) (9.6)
Increase (decrease) in accounts payable (2.9) 40.4
Increase (decrease) in accruals and other
liabilities 8.2 (60.0)
------------- -------------
Net cash provided by operating activities 140.0 125.8
Investing activities
Capital expenditures (18.7) (37.3)
Acquisitions of businesses - net of cash
acquired 0.1 (0.8)
Proceeds from disposal of property and
equipment 4.0 6.8
------------- -------------
Net cash used in investing activities (14.6) (31.3)
Financing activities
Payment of long-term debt (0.2) (3.1)
Increase in long-term debt - 4.3
Net decrease in short-term borrowings (22.8) (65.3)
Purchase of treasury stock (8.1) (6.4)
Proceeds from stock purchase and option
plans 7.8 17.2
Proceeds from termination of interest rate
swap agreement 5.1 -
Cash dividends paid (43.6) (41.8)
------------- -------------
Net cash used in financing activities (61.8) (95.1)
Effect of exchange rate changes on cash 3.4 0.8
------------- -------------
Increase in cash and cash equivalents 67.0 0.2
Cash and cash equivalents at beginning of
year 18.4 6.7
------------- -------------
Cash and cash equivalents at end of
period $85.4 $6.9
============= =============
Supplemental cash flow disclosures
Cash paid for interest $19.3 $24.2
Cash paid (refunded) for income taxes $13.3 $(2.4)
CONTACT: Snap-on Incorporated
Richard Secor, 262-656-5561 (Media)
William Pfund, 262-656-6488 (Investors)
www.snapon.com