Revenue during the quarter grew 7.04 percent to $963.90 million from $900.50 million in the previous year period. Gross margin for the quarter expanded 59 basis points over the previous year period to 51.92 percent. Total expenses were 76.97 percent of quarterly revenues, down from 77.52 percent for the same period last year. This has led to an improvement of 56 basis points in operating margin to 23.03 percent.

Operating income for the quarter was $222 million, compared with $202.40 million in the previous year period.

“We’re encouraged by our first quarter results,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “Net sales growth of 6.3%, including an organic sales increase of 4.1%, coupled with a 10.6% rise in diluted earnings per share, represent a positive start to 2017. We believe these results once again confirm Snap-on’s unique capabilities in providing valued productivity solutions to a growing range of professional customers performing critical tasks in workplaces of consequence. At the same time, the improvement in operating margin before financial services further demonstrates our ability to realize ongoing benefits from our Snap-on Value Creation Processes. Finally, this continued progress along our defined runways for both coherent growth and operating improvement would not be possible without the dedication and capability so evident across Snap-on. I thank our franchisees and associates worldwide for their significant contributions and extraordinary effort.”

The company has spent $81.70 million cash to meet investing activities during the quarter as against cash outgo of $79.60 million in the last year period. It has incurred net capital expenditure of $17.60 million on net basis during the quarter, down 8.81 percent or $1.70 million from year ago period.

The company has spent $66.60 million cash to carry out financing activities during the quarter as against cash outgo of $49.30 million in the last year period.

Cash and cash equivalents stood at $123 million as on Apr. 01, 2017, up 15.71 percent or $16.70 million from $106.30 million on Apr. 02, 2016.

Working capital remains almost stable
Working capital of Snap-on Incorporated  remained almost stable for the quarter at $1,002.60 million, when compared with the previous year period. Current ratio was at 2.03 as on Apr. 01, 2017, down from 2.20 on Apr. 02, 2016.

Cash conversion cycle (CCC) has decreased to 129 days for the quarter from 179 days for the last year period. Days sales outstanding were almost stable at 107 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 55 days for the quarter compared with 105 days for the previous year period. At the same time, days payable outstanding went up to 33 days for the quarter from 32 for the same period last year.