Exhibit 99.1
Snap-on Announces Resignation of CEO, Dale F. Elliott,
and the Election of Board Member, Jack D. Michaels, as Successor
KENOSHA, Wis.--(BUSINESS WIRE)--Nov. 15, 2004--Snap-on Incorporated
(NYSE:SNA), a global leader in tools, diagnostics and equipment, today announced
the resignation of its chairman, president and chief executive officer, Dale F.
Elliott, effective immediately. The company's Board of Directors has elected
Jack D. Michaels, recently retired chairman and chief executive officer of HNI
Corporation (NYSE:HNI) and a Snap-on director since 1998, to fill the position.
"Dale has made considerable contributions to Snap-on and leaves the company
with a strong balance sheet and cash flow," said Bruce Chelberg, a member of the
company's Board of Directors. "As head of the company, he set the highest
standards of integrity and commitment. The Board is grateful for Dale's many
contributions during his nine years with the company."
"Jack is a dynamic, aggressive leader with a deep reservoir of lean
manufacturing and global experience, as well as a proven track record of
improving operating efficiencies and driving growth," said Chelberg. "We're
confident that he will do the same with Snap-on."
During Michaels' 14-year tenure as CEO of HNI Corporation, the company
experienced dramatic growth, more than tripling revenues while increasing
profits by more than four times and earnings per share by more than five times.
He achieved this performance during challenging economic conditions and in an
intensely competitive marketplace. HNI Corporation, formerly HON Industries, is
a leading manufacturer of office furniture and hearth products based in Iowa.
"I'm very pleased to accept this position at Snap-on, well known for its
quality and innovation," said Michaels. "Snap-on is an outstanding company with
a great brand, a strong customer base, quality management team, a motivated
dealer organization and dedicated employees. I look forward to leveraging these
strengths and accelerating the pace of change in order to drive profitable
growth and take Snap-on to the next level." Michaels cited as his near-term
priorities the need to work with the organization to improve operating
efficiencies, respond to customer needs and market changes more quickly and to
correct performance issues in its commercial and industrial businesses.
The company also said it expects to meet its previously announced outlook
of full-year 2004 reported earnings to be in the range of $1.35 to $1.45 per
diluted share, excluding severance costs to Elliott of approximately $0.04 per
share.
Snap-on Incorporated is a leading global innovator, manufacturer and
marketer of tool, diagnostics 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 12,000 people worldwide.
Important information about forward-looking statements
Statements in this news release that are not historical facts, including
statements (i) that include the words "expects," "targets," "plans,"
"estimates," "believes," "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 any forward-looking
statements included in this release that are based upon assumptions and
estimates were developed by management in good faith and that management
believes such assumptions and estimates to be reasonable as of the date of this
release. However, these statements are subject to risks, uncertainties or other
factors, including some events that may not be within the control of the
company, that could cause (and in some cases have caused) actual results to
differ materially from those described in any such statement.
These risks and uncertainties include, without limit, uncertainties related
to estimates, assumptions and projections generally, and the timing and progress
with which Snap-on can continue to achieve savings from cost reduction,
continuous improvement and other Operational Fitness initiatives; make
improvements in supply chain efficiencies; and make effective improvements in
machine maintenance, plant productivity and manufacturing line set-up and
change-over practices; as well as uncertainties related to the company's
capability to retain and attract dealers, effectively implement new programs,
capture new business, introduce successful new products and other Profitable
Growth initiatives; and its ability to withstand disruption arising from planned
facility closures, or other labor interruptions. These risks also include
uncertainties related to Snap-on's ability to withstand external negative
factors including terrorist disruptions on business; potential 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; the impact on
approximately ten percent of the dealer network and on the company's sales from
hurricane activity in the Southern and Eastern coastal regions of the United
States and the related impact of decreased sales on the operating income from
financial services; and the absence of significant changes in the current
competitive environment, inflation, interest rates, legal proceedings, and
energy and raw material supply and pricing (including steel), supplier
disruptions, currency fluctuations, or the material worsening of economic and
political situations around the world, particularly in North America and Europe.
In addition, investors should be aware that generally accepted accounting
principles prescribe when a company should reserve for particular risks,
including litigation exposures. Accordingly, results for a given reporting
period could be significantly affected if and when a reserve is established for
a major contingency. Reported results, therefore, may appear to be volatile in
certain accounting periods.
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 or regarded as a
representation by the company or its management that the projected results will
be achieved. 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.
CONTACT: for Snap-on Incorporated
Richard Secor, 262/656-5561 (Media)
William Pfund, 262/656-6488 (Investors)
www.snapon.com