Oct 17 (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%.