(Reuters) – Snap-On posted a lower-than-expected third-quarter sales on Thursday, as inflationary pressures weighed on demand in the tools segment.

Higher borrowing costs and a rise in prices of tools – one of the company’s biggest revenue drivers – have led customers to limit purchases.

Sales in the Snap-On’s tools segment fell about 3% to $500.5 million, marking the third straight quarter in which the company reported a sales drop in the division.

Total sales fell 1.1% to about $1.15 billion, compared to a year ago, marginally missing the average analysts’ estimate of about $1.16 billion, according to data compiled by LSEG.

The Kenosha, Wisconsin-based manufacturer, however, reported a profit of $4.70 per share, compared with expectations of $4.59.

The profit growth was largely aided by lower costs. Snap-On’s operating margin before financial services increased by 80 basis points to 22%.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Pooja Desai)