The 2020 Mid-Year Economic Update_long

Snap-on Sales Down Slightly in 3Q

Commercial and industrial group segment sales increased 1.5% from 2018 levels.

Snap-on Inc. (NYSE: SNA), Kenosha, Wisconsin, reported sales for the third quarter of $901.8 million, an increase of 0.4% from the prior year. Profit increased 1.1% to $169.2 million.

For the first nine months, sales were $2.8 billion, down 0.5% over the prior-year period. Profit increased 3.7% to $536.2 million.

Commercial and industrial group segment sales of $335.3 million in the quarter increased $5.1 million, or 1.5%, from 2018 levels, reflecting a $9.5 million, or 2.9%, organic sales gain and $1.1 million of acquisition-related sales, partially offset by $5.5 million of unfavorable foreign currency translation. The organic sales increase includes higher sales in the segment’s specialty tools and European-based hand tools businesses, as well as increases with customers in critical industries.

Operating earnings of $48.3 million in the period, including $0.7 million of unfavorable foreign currency effects, compared to $53.0 million in 2018, while the operating margin (operating earnings as a percentage of segment sales) of 14.4% compared to 16.1% a year ago.

Snap-on Tools Group segment sales of $385.2 million in the quarter decreased $4.6 million, or 1.2%, from 2018 levels, reflecting a $1.3 million, or 0.3%, organic sales decline and $3.3 million of unfavorable foreign currency translation. The organic sales decrease includes lower sales in the segment’s international operations, partially offset by higher sales in the United States.

Operating earnings of $53.0 million in the period, including $2.7 million of unfavorable foreign currency effects, decreased $6.3 million from 2018 levels, and the operating margin of 13.8% compared to 15.2% last year.

Repair Systems & Information Group segment sales of $322.7 million in the quarter increased $8.3 million, or 2.6%, from 2018 levels, reflecting a $10.1 million, or 3.2%, organic sales gain and $1.8 million of acquisition-related sales, partially offset by $3.6 million of unfavorable foreign currency translation. The organic sales increase includes higher sales to OEM dealerships and increased sales of diagnostics and repair information products to independent repair shop owners and managers, partially offset by lower sales of undercar equipment.

Operating earnings of $83.3 million in the period, including $1.0 million of unfavorable foreign currency effects, increased $2.6 million from 2018 levels, and the operating margin of 25.8% compared to 25.7% a year ago.

Financial Services operating earnings of $61.0 million on revenue of $84.1 million in the quarter compared to operating earnings of $59.3 million on revenue of $82.0 million a year ago. Originations of $253.5 million in the third quarter decreased $13.5 million, or 5.1%, from 2018 levels.

 

 

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