Kenosha, WI-based tool maker Snap-on reported its 2017 fourth quarter and full-year financial figures on Thursday, which included healthy overall gains in sales, while its Tools Group had a continued modest decline.
The company posted Q4 total sales of $974.6 million, up 9.5 percent year-over-year (YoY), while organic sales increased 4.3 percent. Total profit of $129.5 million was down from $146.3 million a year earlier, while operating profit of $212.1 million was down from $227.7 million a year earlier.
For the full-year, Snap-on's 2017 total sales of $3.69 billion increased 7.5 percent, with organic sales up 3.4 percent. Sales increased $265.5 million, with more than half — $141.5 million — of that from acquisitions. Total 2017 profit of $557.7 million was up slightly from 2016's $546.4 million. Full-year operating profit of $881.5 million increased from $854.2 million in 2016.
"We’re encouraged by our fourth quarter and full year 2017 results,” said Nick Pinchuk, Snap-on chairman and CEO. "Our fourth quarter net sales growth of 9.5 percent, or 4.3 percent organically, was the highest of any quarter in 2017, with further progress along our runways for growth in both the Commercial & Industrial Group and the Repair Systems & Information Group, more than offsetting continuing sales headwinds in the Snap-on Tools Group."
By business segment:
Snap-on Tools Group Q4 sales of $409.2 million decreased 2.0 percent YoY, with organic sales down 3.0 percent. That follows a Q3 total sales decline of 1.1 percent and organic decline of 1.6 percent. Q4 operating profit of $67.2 million decreased $6.2 million YoY, while operating margin of 16.4 percent was down from 17.6 percent a year earlier. Full-year 2017 sales of $1.63 billion decreased 0.5 percent, while operating profit of $274.5 million decreased 2.3 percent.
Repair Systems & Information Group Q4 sales of $356.8 million increased 11.6 percent YoY, with organic sales 6.2 percent. Snap-on said the organic gain included increased sales to OEM dealerships and higher sales of diagnostics and repair information products to independent repair shop owners and managers. Q4 operating profit of $89.8 million increased $7.3 million YoY, while operating margin of 25.2 percent was down from 25.8 percent a year earlier. Full-year 2017 sales of $1.35 billion increased 14.2 percent, while operating profit of $333.8 million increased 12.1 percent.
Commercial & Industrial Group Q4 sales of $341.7 million increased 19.4 percent YoY, with organic sales up 10.1 percent. Snap-on said the organic gain primarily included higher sales to customers in critical industries as well as gains in the segment’s European-based hand tools business, power tools business and Asia/Pacific operations. Q4 operating profit of $50.9 million increased $7.0 million YoY, while operating margin of 14.9 percent was down from 15.3 percent a year earlier. Full-year sales of $1.27 billion increased 10.2 percent, while operating profit of $185.3 million increased 10.3 percent.