Snap-on 3rd Quarter Sales Increase 5.2%

On Oct. 19, tools and tool storage manufacturer Snap-on reported its 2023 third-quarter earnings, which included net sales of nearly $1.16 billion, an increase of $56.8 million or 5.2%, from 2022 levels. The company also reported a 4.7% organic sales gain and $4.4 million of favorable foreign currency translation.

For 3Q 2023, net earnings in the quarter were $243.1 million, or $4.51 per diluted share, compared to net earnings of $223.9 million, or $4.14 per diluted share, a year ago.

Operating earnings before financial services were $245.2 million, compared to $223.5 million in 2022. As a percentage of net sales, operating earnings before financial services were 21.2% in the third quarter, compared to 20.3% last year, reflecting an improvement of 90 basis points.

Consolidated operating earnings for the quarter were $314.6 million, or 25.1% of revenues (net sales plus financial services revenue), compared to $289.9 million, or 24.4% of revenues, during the same period last year.

“We’re encouraged by our third quarter as it reflects ongoing advancement in sales, profitability, and earnings in a continually changing environment, and it demonstrates the wide-ranging and considerable strengths that mark each of our operating segments,” said Nick Pinchuk, Snap-on Chairman and CEO. “Achieved in a period of variability, we believe our performance confirms the resilience of our markets and illustrates the diverse opportunities along our runways for growth, in both our activities within automotive repair and with those outside the garage, particularly in our businesses serving critical industries, which continue to display significant progress.”

By Snap-on business segment in 2Q23:

• Commercial & Industrial Group: Segment sales were $366.4 million in the quarter compared to $356.8 million last year, reflecting an $11.2 million, or 3.2%, organic sales gain, partially offset by $1.6 million of unfavorable foreign currency translation. The organic increase is primarily due to higher activity with customers in critical industries, partially offset by lower sales in the segment’s Asia Pacific operations.
• Snap-on Tools Group: Segment sales were $515.4 million in the quarter compared to $496.6 million last year, reflecting an $18.3 million, or 3.7%, organic sales increase and $0.5 million of favorable foreign currency translation. The organic gain is comprised of higher sales in both the international and U.S. operations.
• Repair Systems & Information Group: Segment sales were $431.8 million in the quarter compared to $414.0 million last year, reflecting a $13.0 million, or 3.1%, organic sales increase and $4.8 million of favorable foreign currency translation. The organic gain includes higher sales of undercar equipment and increased sales of diagnostic and repair information products to independent repair shop owners and managers, partially offset by lower activity with OEM dealerships.

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