(Reuters) – Toolmaker Snap-on Inc beat Wall Street estimates for second-quarter profit on Thursday, powered by healthy demand for its repair tools and equipment from automotive and industrial customers.
Snap-on, which caters to industries such as aerospace, oil and gas and automotive, has benefited from a buzzing aftermarket business.
The company dealt with inflation headwinds by raising prices, curbing discounts and finding creative ways to cut costs.
“We project that capital expenditures in 2023 will approximate $100 million, of which $48.8 million was incurred in the first six months of the year,” the company said.
For the quarter ended July 1, sales at the Snap-on Tool segment, its largest, rose 0.48% compared with a year earlier to $523.1 million.
The company’s second-quarter net earnings rose 14% to $264 million, or $4.89 per diluted share, ahead of Wall Street estimates of $4.58 per share, according to Refinitiv data.
Its net sales rose roughly 4.8% to $1.19 billion in the quarter, in line with the analysts’ estimates.
(Reporting by Pratyush Thakur in Bengaluru; Editing by Krishna Chandra Eluri)