SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For quarterly period ended June 28, 1997
Commission File Number 1-7724
SNAP-ON INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware 39-0622040
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
10801 Corporate Drive, Kenosha, Wisconsin 53141-1430
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (414) 656-5200
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past
90 days. Yes [ X ] No [ ]
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date:
Class Outstanding at July 26,1997
Common stock, $1 per value 61,171,393 shares
<PAGE>
SNAP-ON INCORPORATED
INDEX
Page
Part I. Financial Information
Consolidated Statements of Earnings -
Thirteen Weeks and Twenty-six Weeks Ended
June 28, 1997 and June 29, 1996 3
Consolidated Balance Sheets -
June 28, 1997 and December 28, 1996 4-5
Consolidated Statements of Cash Flows -
Twenty-six Weeks Ended
June 28, 1997 and June 29, 1996 6
Notes to Consolidated Financial Statements 7-9
Management's Discussion and Analysis of
Financial Condition and Results of Operations 10-12
Part II. Other Information 13
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
<CAPTION>
SNAP-ON INCORPORATED
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands except per share data)
(Unaudited)
Thirteen Weeks Ended Twenty-six Weeks Ended
June 28, June 29, June 28, June 29,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Net sales $ 409,231 $ 384,554 $ 784,530 $ 728,918
Cost of goods sold 201,564 190,425 383,896 360,960
-------- -------- ---------- ----------
Gross profit 207,667 194,129 400,634 367,958
Operating expenses 159,112 151,731 310,431 291,430
Net finance income (18,362) (15,925) (35,827) (31,524)
-------- -------- --------- ---------
Operating earnings 66,917 58,323 126,030 108,052
Interest expense (4,479) (3,310) (8,860) (6,252)
Other income (expense) - net (580) (207) (1,575) 70
-------- --------- --------- ---------
Earnings before income taxes 61,858 54,806 115,595 101,870
Income taxes 22,887 20,278 42,770 37,692
-------- --------- --------- ---------
Net earnings $ 38,971 $ 34,528 $ 72,825 $ 64,178
======== ========= ========= =========
Earnings per weighted average
common share $ .64 $ .56 $ 1.20 $ 1.05
======== ========= ========= =========
Dividends declared per common
shares $ .41 $ .38 $ .61 $ .56
======== ========= ========= =========
Weighted average common
shares outstanding 60,924 61,094 60,889 61,007
======== ========= ========= =========
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE>
SNAP-ON INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
June 28, December 28,
1997 1996
ASSETS
Current Assets
Cash and cash equivalents $ 9,828 $ 15,350
Accounts receivable,
less allowances 637,416 651,739
Inventories
Finished stock 318,782 271,785
Work in process 45,516 42,483
Raw materials 58,711 62,057
Excess of current cost
over LIFO cost (106,749) (106,575)
---------- -----------
Total inventory 316,260 269,750
Prepaid expenses and other
assets 87,309 80,485
---------- -----------
Total current assets 1,050,813 1,017,324
Property and equipment
Land 24,131 24,337
Buildings and improvements 165,943 166,764
Machinery and equipment 312,162 319,138
---------- -----------
502,236 510,239
Accumulated depreciation (253,779) (264,945)
---------- -----------
Total property and equipment 248,457 245,294
Deferred income tax benefits 64,743 55,413
Intangible and other assets 253,968 202,757
---------- -----------
Total assets $1,617,981 $1,520,788
========== ===========
The accompanying notes are an integral part of these statements.
<PAGE>
SNAP-ON INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
June 28, December 28,
1997 1996
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 93,381 $ 89,310
Notes payable and current
maturities of long-term debt 27,583 23,274
Dividends payable 12,798 -
Accrued compensation 32,332 36,467
Dealer deposits 40,431 51,036
Accrued income taxes 13,725 11,366
Other accrued liabilities 147,614 129,918
---------- ----------
Total current liabilities 367,864 341,371
Long-term debt 182,624 149,804
Deferred income taxes 7,407 7,027
Retiree health care benefits 86,232 84,593
Pension and other long-term
liabilities 115,176 109,832
---------- ----------
Total liabilities 759,303 692,627
SHAREHOLDERS' EQUITY
Preferred stock - authorized
15,000,000 shares of $1 par
value; none outstanding - -
Common stock - authorized
250,000,000 shares of $1
par value; issued -
June 28, 1997 - 66,140,819 shares
December 28, 1996 - 65,971,917
shares 66,141 65,972
Additional contributed capital 69,873 66,506
Retained earnings 874,152 838,484
Foreign currency translation
adjustment (22,200) (13,930)
Treasury stock at cost - 5,197,146
and 5,186,550 shares (129,288) (128,871)
---------- ----------
Total shareholders' equity 858,678 828,161
---------- ----------
Total liabilities and
shareholders' equity $1,617,981 $1,520,788
========== ==========
The accompanying notes are an integral part of these statements.
<PAGE>
SNAP-ON INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Twenty-six Weeks Ended
June 28, June 29,
1997 1996
OPERATING ACTIVITIES
Net earnings $ 72,825 $ 64,178
Adjustments to reconcile
net earnings to net cash
provided by:
Depreciation 15,818 15,026
Amortization 2,923 2,360
Deferred income taxes (4,485) 5,975
(Gain) loss on sale of
assets (38) 310
Changes in operating assets
and liabilities:
Decrease in receivables 21,528 12,385
Increase in inventories (45,758) (8,340)
Increase in prepaid expenses (9,145) (1,300)
(Increase) decrease in other
noncurrent assets (4,174) 9,748
Increase (decrease) in accounts
payable 3,985 (9,021)
Increase (decrease) in accruals,
deposits and other long-term
liabilities (4,566) 6,917
---------- ----------
Net cash provided by operating
activities 48,913 98,238
INVESTING ACTIVITIES
Capital expenditures (21,923) (24,337)
Acquisitions of businesses (48,965) (31,962)
Disposal of property and equipment 1,305 1,258
---------- ----------
Net cash used in investing activities (69,583) (55,041)
FINANCING ACTIVITIES
Payment of long-term debt (7,755) (9,044)
Increase in long-term debt - 2,700
Increase (decrease) short-term
borrowings-net 44,658 (13,435)
Purchase of treasury stock (417) (2,940)
Proceeds from stock plans 3,537 12,035
Cash dividends paid (24,359) (21,945)
---------- ----------
Net cash provided by (used in)
financing activities 15,664 (32,629)
Effect of exchange rate changes (516) (209)
---------- ----------
Increase (decrease) in cash and
cash equivalents (5,522) 10,359
Cash and cash equivalents at
beginning of year 15,350 16,211
---------- ----------
Cash and cash equivalents at
end of period $ 9,828 $ 26,570
========== ==========
The accompanying notes are an integral part of these statements.
<PAGE>
SNAP-ON INCORPORATED
NOTES TO CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS
1. This report should be read in conjunction with the consolidated
financial statements and related notes included in Snap-on
Incorporated's Annual Report for the year ended December 28, 1996.
In the opinion of management, all adjustments (consisting only of
normal recurring adjustments) necessary to a fair statement of
financial condition and results of operations for the thirteen and
twenty-six weeks ended June 28, 1997 have been made. Management also
believes that the results of operations for the thirteen and twenty-
six weeks ended June 28, 1997 are not necessarily indicative of the
results to be expected for the full year.
2. Snap-on Incorporated normally declares and pays in cash four regular,
quarterly dividends. However, the third quarter dividend in each year
is declared in June, giving rise to two regular quarterly dividends
appearing in the second quarter statements and correspondingly, three
regular quarterly dividends appearing in the first twenty-six weeks'
statements.
3. Income tax paid for the twenty-six week period ended June 28, 1997
and June 29, 1996 was $42.6 million and $31.2 million.
4. Interest paid for the twenty-six week period ended June 28, 1997 and
June 29, 1996 was $5.9 million and $6.9 million.
5. During the first quarter, the Corporation acquired a 50 percent
interest in The Thomson Corporation's Mitchell Repair Information
business. The Corporation is obligated to purchase the remainder of
the newly formed Mitchell Repair Information Company ("MRIC") within
the next five years. MRIC is a provider of print and electronic
versions of vehicle mechanical and electrical system repair
information to vehicle repair and service establishments throughout
North America. The Corporation also acquired Computer Aided Service,
Inc., a developer of repair shop management and point of sale
systems, and diagnostics equipment.
6. Distribution of shares in connection with the three-for-two split of
the Corporation's common stock was made on September 10, 1996 to
shareholders of record on August 20, 1996. All prior year per share
and weighted average share amounts have been restated.
7. In October 1995, the Corporation entered into agreements that provide
for the sale, without recourse, of an undivided interest in a pool of
certain of its accounts receivable to a third-party financial
institution. These agreements, which include subsequent amendments,
provide for a maximum of $250 million of such accounts receivable to
be sold and remain outstanding at any one time.
As of June 28, 1997, $225.0 million of interest-bearing installment
receivables were sold under these agreements on a revolving basis, of
which $25.0 million were sold in each of the first two quarters of
1997. The proceeds were used for working capital and general
corporate purposes. The sale is reflected as a reduction of accounts
receivable in the accompanying Consolidated Balance Sheets and as an
increase to operating cash flows in the accompanying Consolidated
Statement of Cash Flows. Subsequent to quarter-end, the Corporation
sold an additional $25.0 million of interest-bearing installment
receivables under these agreements.
8. In the first quarter of 1997, the Financial Accounting Standards
Board (FASB) issued Statement of Financial Accounting Standards
(SFAS) No. 128, "Earnings per Share," which is effective for fiscal
years ending after December 15, 1997. The Corporation does not
anticipate that the adoption of this statement will have any impact
on its consolidated financial statements. In the second quarter of
1997, FASB issued SFAS No. 130, "Reporting Comprehensive Income" and
SFAS No. 131, "Disclosures about Segments of an Enterprise and
Related Information." As required, the Corporation will adopt these
statements for the fiscal years beginning after December 15, 1997.
9. On April 25, 1997, shareholders approved an amendment to the
Corporation's Restated Certificate of Incorporation to increase the
total number of authorized shares of common stock from 125 million to
250 million.
10. Certain prior year amounts have been restated on the accompanying
Consolidated Statements of Cash Flows to conform to current year
presentations. This change resulted in an increase of "Net cash
provided by operating activities" of $9.7 million and an increase in
"Net cash used in investing activities" of the same amount.
11. In accordance with Securities and Exchange Commission Release No. 33-
7386, governing disclosure requirements for financial instruments,
the Corporation is providing the following description of accounting
policies used for financial instruments.
The Corporation uses derivative instruments to manage well-defined
interest rate and foreign currency exposures. The Corporation does
not use derivative instruments for trading purposes. The criteria
used to determine if hedge accounting treatment is appropriate are
(i) the designation of the hedge to an underlying exposure (ii)
whether or not overall risk is being reduced and (iii) if there is a
correlation between the value of the derivative instrument and the
underlying obligation.
Interest Rate Derivative Instruments:
The Corporation enters into interest rate swap agreements to manage
interest costs and risks associated with changing interest rate. The
differentials paid or received on interest rate agreements are
accrued and recognized as adjustments to interest expense. Gains and
losses realized upon settlement of these agreements are deferred and
amortized to interest expense over a period relevant to the agreement
if the underlying hedged instrument remains outstanding, or
immediately if the underlying hedged instrument is settled.
Foreign Currency Derivative Instruments:
The Corporation has operations in a number of countries and has
intercompany transactions among them and, as a result, is exposed to
changes in foreign currency exchange rates. The Corporation manages
most of these exposures on a consolidated basis, which allows netting
certain exposures to take advantage of any natural offsets. To the
extent the net exposures are hedged, forward contracts are used.
Gains and/or losses on these foreign currency hedges are included in
income in the period in which the exchange rates change. Gains
and/or losses have not been material to the consolidated financial
statements.
12. Tejas Testing Technology One, L.C. and Tejas Testing Technology Two,
L.C. (the "Tejas Companies"), former subsidiaries of the Corporation,
previously entered into contracts with the Texas Natural Resources
Conservation Commission ("TNRCC"), an agency of the State of Texas,
to perform automotive emissions testing services. The Corporation
guaranteed payment (the "Guaranty") of the Tejas Companies'
obligations under a seven year lease agreement in the amount of
approximately $98.8 million plus an interest factor, pursuant to
which the Tejas Companies leased the facilities necessary to perform
the contracts. The Guaranty was assigned to the lessor's lenders (the
"Lenders"). The Tejas Companies agreed to indemnify the Corporation
for any payments it must make under the Guaranty.
The State of Texas subsequently enacted legislation designed to
terminate the emissions testing program described in the contracts.
On September 12, 1995, the Tejas Companies filed bankruptcy petitions
in the United States Bankruptcy Court for the Western District of
Texas (Austin Division). The Corporation has filed its claim for
indemnification in such bankruptcy. The Tejas Companies commenced
litigation in state and federal court against the TNRCC and related
entities, and the Corporation intervened in such litigation to
protect its interests. On April 21, 1997, a state court judge in the
345th Judicial District Court of Travis County, Texas entered a
judgment in favor of the Tejas Companies in the net amount of $179
million. The parties subsequently entered into a settlement
agreement regarding such litigation pursuant to which the State of
Texas will pay an aggregate of $140 million, plus interest, with not
less than $110 million to be paid during the first two year period
(which amount has been appropriated by the Texas Legislature) and the
remainder in the following two-year period (which amount is expected
to be appropriated at such time). The settlement was approved by
the Bankruptcy Court on August 14, 1997. An initial installment of
$70 million will be paid in escrow pending approval of the Bankruptcy
Court order by the Fifth Circuit by February 1, 1998, if the Bankruptcy
Court order is appealed. If this approval, if necessary, is not
obtained by February 1, 1998 or the deadline is not extended, the state
can reclaim the escrowed funds and the parties will continue to pursue
the political process and all available legal remedies to satisfy the
judgement. Management believes that the conditions will be met, or
the deadline will be extended, by February 1, 1998, based upon
statements and sworn testimony of the state parties and of
representatives of the Tejas Companies.
The Lenders have agreed to forbear until at least December 31, 1997
from exercising their rights under the terms of the Guaranty to cause
the Corporation to pay all lease obligations to the Lenders on an
accelerated basis. The Corporation continues to make payments under
the Guaranty of approximately $1.8 million per month, which have
totaled $44.9 million through June 28, 1997. The Corporation
previously recognized the remaining net obligation under the
Guaranty, which as of June 28, 1997 is $46.6 million, in Other Long-
term Liabilities. In addition, the Corporation has recorded as assets
the net amounts paid or payable under the Guaranty, which amounts are
expected to be received from the Tejas Companies under their
obligation to indemnify the Corporation. These net receivables total
$91.5 million as of June 28, 1997 and are included in Intangible and
Other Assets. The Corporation believes that ultimate recovery of the
net receivables from the Tejas Companies is probable, and it will
make an ongoing assessment of the likelihood of realization of such
receivables.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Overview: The Corporation posted record sales, net earnings and earnings
per share for the second quarter and first six months of 1997. Net
earnings for the second quarter of 1997 increased 12.9% over the year ago
quarter on a net sales increase of 6.4%. For the first six months, 1997
net earnings increased 13.5% over the comparable 1996 period on a net
sales increase of 7.6%. Earnings per share for the second quarter and
first six months increased 14.3% over the 1996 comparable period. The
second quarter's results benefited from several acquisitions and higher
sales in the Corporation's North American tool and equipment businesses.
Sales: Net sales for the second quarter of 1997 were $409.2 million, an
increase of 6.4% over second quarter 1996 sales of $384.6 million. Net
sales for the first six months of 1997 were $784.5 million, an increase of
7.6% over 1996 six-month sales of $728.9 million. Excluding acquisitions,
sales increased 3% in the quarter and 2% in the first half of 1997.
North American sales for the second quarter of 1997 were $323.0 million,
an increase of 9.7% over second quarter 1996 sales of $294.5 million.
North American sales for the first six months of 1997 were $604.1 million,
an increase of 9.1% over six-month 1996 sales of $553.6 million. Sales
excluding acquisitions grew 6% for the quarter and 3% for the first half
of 1997. In the second quarter, increased sales in the dealer and
industrial channels, a strong air conditioning equipment season, shipments
of under-car equipment to national accounts and revenue growth in the
Equipment Solutions purchasing facilitation business all contributed to
the higher results. The Mitchell Repair Information acquisition also was
a good performer in the quarter.
European sales for the second quarter of 1997 were $65.5 million, a
decrease of 5.7% from second quarter 1996 sales of $69.4 million. European
sales for the first six months of 1997 were $140.9 million, an increase of
3.3% over six-month 1996 sales of $136.3. Sales excluding acquisitions
declined 11% for the quarter and 2% for the first half of 1997.
Persistent weakness in the economic climate of many European countries and
the negative impact of foreign currency have affected performance.
Other Non-U.S. sales for the second quarter of 1997 were $20.7 million, an
increase of .8% over second quarter 1996 sales of $20.6 million. Other
Non-U.S. sales for the first six months of 1997 were $39.5 million, an
increase of 1.3% over six-month 1996 sales of $39.0 million. Excluding the
effects of foreign currency translation, sales would have increased 7% for
the quarter and 8% for the first six months. Sales in Japan increased in
local currency and Australia's operations showed particular strength.
Earnings: Net earnings for the second quarter of 1997 were $39.0 million,
an increase of 12.9% over second quarter 1996 net earnings of
$34.5 million. Second quarter earnings per share increased to $.64, a
14.3% increase over second quarter 1996 earnings per share of $.56. Net
earnings for the first six months of 1997 were $72.8 million, an increase
of 13.5% over six-month 1996 net earnings of $64.2 million. Earnings per
share for the first six months of 1997 rose to $1.20 per share, a 14.3%
increase over six-month 1996 earnings per share of $1.05.
Operating expenses: As a percentage of net sales, second quarter total
operating expenses decreased to 38.9% in 1997 from 39.5% in 1996. As a
percentage of net sales, six-month operating expenses decreased to 39.6%
in 1997 from 40.0% in 1996.
Finance income: Finance income for the second quarter of 1997 was $18.4
million, an increase of 15.3% over second quarter 1996 finance income of
$15.9 million. Finance income for the first six months of 1997 was $35.8
million, an increase of 13.6% increase over six-month 1996 finance income
of $31.5 million. The major factors for the increases were the growth in
extended credit financings resulting from strong sales in previous
quarters and higher leasing income. Partially offsetting this increase was
the securitization of an additional $50.0 million of extended credit
receivables as discussed in Note 7.
FINANCIAL CONDITION
Liquidity: Cash and cash equivalents decreased to $9.8 million at the end
of the second quarter from $15.4 million at the end of 1996. Working
capital was $682.9 million at the end of the second quarter versus $676.0
million at the end of 1996. At the end of the quarter, the Corporation
had a $100 million long-term revolving credit facility to support the
issuance of commercial paper.
In September 1994, the Corporation filed a registration statement with the
Securities and Exchange Commission that allows the Corporation to issue
from time to time up to $300 million of unsecured indebtedness. In
October 1995, the Corporation issued $100 million of its notes to the
public. The shelf registration gives the Corporation financing flexibility
to operate the business.
The Corporation believes it has sufficient sources of liquidity to support
working capital requirements, finance capital expenditures and pay
dividends.
Accounts receivable: Accounts receivable decreased to $637.4 million at
the end of the second quarter from $651.7 million at the end of 1996. In
each of the first two quarters of 1997, the Corporation sold an additional
$25.0 million securitization of its receivables as discussed in Note 7.
The majority of the Corporation's accounts receivable involve customers'
extended credit and lease purchases of higher-value products. Other
receivables include those from dealers, industrial customers and
government entities.
Inventories: Inventories increased to $316.3 million at the end of the
second quarter from $269.8 million at the end of 1996. An inventory build
in anticipation of upcoming emissions programs in the U.S. and higher-
than-planned inventory of product purchased for resale are primarily
responsible for the increase.
Liabilities: Total short-term and long-term debt was $210.2 million at the
end of the second quarter compared with $173.1 million at the end of 1996.
The increase is attributable to the funding of acquisitions completed in
the first quarter of 1997.
Average shares outstanding: Average shares outstanding in the second
quarter of 1997 decreased to 60.9 million shares compared with 61.1
million in last year's second quarter. For the first six months of 1997,
average shares outstanding declined to 60.9 million versus 61.0 million in
the comparable six months of 1996. The Corporation repurchased 10,596
shares of its common stock in the first quarter.
Dividend increase/Share repurchase: At its June 27, 1997 board meeting,
the Corporation's board of directors declared a 5.0% increase in the
common stock dividend. The new quarterly dividend will increase $.01 per
share to $.21 per share, or $.84 on an annual basis.
The board also authorized the repurchase of $100 million of the
Corporation's common stock over a two year period. This buyback is
supplemental to the 1996 board of directors authorization that allows the
purchase of stock in an amount equivalent to that necessary to prevent
dilution created by shares issued for stock options, employee and dealer
stock purchase plans, and other corporate purposes.
Other matters: Refer to Note 12 for discussion of a guaranty of lease
obligations relating to emissions testing facilities that were to be used
under a contract with the State of Texas to perform testing services.
<PAGE>
PART II. OTHER INFORMATION
Item 4: Submission of matters to a vote of security holders
The Corporation held its Annual Meeting of Shareholders on April 25, 1997.
The following is a summary of the matters voted on at that meeting. There
were 60,879,788 outstanding shares eligible to vote.
a) The shareholders elected three members of the Corporation's
Board of Directors to serve until the 2000 Annual Meeting and
one member to serve until the 1999 Annual Meeting and one member
to serve until the 1998 Annual Meeting. The persons elected to
the Corporation's Board of Directors, the number of shares cast
for and the number of shares withheld with respect to each of
these persons were as follows:
Director For Withheld Term
Bruce S. Chelberg 51,908,304 695,963 2000
Arthur L. Kelly 51,900,239 704,028 2000
Roxanne J. Decyk 51,905,590 698,677 2000
Branko M. Beronja 51,891,995 712,272 1999
Donald W. Brinckman 1999
George W. Mead 1999
Jay H. Schnabel 1999
Leonard A. Hadley 51,905,874 698,393 1998
Robert A. Cornog 1998
Raymond F. Farley 1998
Edward H. Rensi 1998
b) Shareholders approved an amendment to the Corporation's Restated
Certificate of Incorporation to increase the total number of
authorized shares of common stock from 125 million to 250
million shares.
For Against Abstained
41,343,682 11,099,553 161,032
Item 6: Exhibits and reports on Form 8-K
Item 6(a): Exhibits
Exhibit 27 Financial Data Schedule
Item 6(b): Reports on Form 8-K
No reports on Form 8-K for the thirteen weeks ended June 28, 1997 were
required to be filed.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Snap-on Incorporated has duly caused this report to be signed on its
behalf by the undersigned duly authorized persons.
SNAP-ON INCORPORATED
Date: August 12, 1997 /s/ R. A. Cornog
R. A. CORNOG
(Chairman, President and
Chief Executive Officer)
Date: August 12, 1997 /s/ D.S. Huml
D.S. HUML
(Principal Accounting Officer
and Chief Financial Officer)
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF SNAP-ON INCORPORATED AS OF AND FOR THE
TWENTY-SIX WEEKS ENDED JUNE 28, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> OTHER <F1>
<FISCAL-YEAR-END> JAN-03-1998
<PERIOD-START> DEC-29-1996
<PERIOD-END> JUN-28-1997
<CASH> 9,828
<SECURITIES> 0
<RECEIVABLES> 653,854
<ALLOWANCES> 16,438
<INVENTORY> 316,260
<CURRENT-ASSETS> 1,050,813
<PP&E> 502,236
<DEPRECIATION> 253,779
<TOTAL-ASSETS> 1,617,981
<CURRENT-LIABILITIES> 367,864
<BONDS> 182,624
0
0
<COMMON> 66,141
<OTHER-SE> 792,537
<TOTAL-LIABILITY-AND-EQUITY> 1,617,981
<SALES> 784,530
<TOTAL-REVENUES> 784,530
<CGS> 383,896
<TOTAL-COSTS> 383,896
<OTHER-EXPENSES> 310,431
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,860
<INCOME-PRETAX> 115,595
<INCOME-TAX> 42,770
<INCOME-CONTINUING> 72,825
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 72,825
<EPS-PRIMARY> 1.20
<EPS-DILUTED> 1.20
<FN>
<F1> 26 WEEKS
</TABLE>
