Kenosha, WI-based tool maker Snap-on reported its 2018 second quarter financial figures last week, showing a continued year-over-year (YoY) sales increase, though decelerating further from Q1's slowdown..
The company posted total Q2 sales of $954.6 million, up 3.6 YoY. That compares with 5.5 percent growth in Q1, and 9.5 percent growth in Q4 2017. Organic sales improved 1.3 percent in Q2, up from 0.8 percent in Q1.
Total Q2 profit of $178.7 million was up 16.6 percent YoY and up from $163.0 million in Q1. Operating profit was $193.1 million in Q2, up 30 basis points YoY.
"Net sales growth in our Commercial and Industrial Group reflects the strength of Snap-on’s value proposition of making work easier for serious professionals in critical industries beyond vehicle repair," said Nick Pinchuk, Snap-on chairman and CEO. "In our businesses serving vehicle repair, the Repair Systems and Information Group again realized strong sales of diagnostics and repair information products resulting from both successful new product launches and industry tailwinds, and we did make some progress in overcoming our challenges in the Snap-on Tools Group. We believe the overall macro-economic environment for the vehicle repair and critical industries markets we serve generally remains robust and affords significant ongoing opportunities."
By business segment in Q2:
- Snap-on Tools Group sales of $411.9 million decreased 0.5 percent YoY, with organic sales down 1.5 percent. Organic sales were lower in the U.S, and flat internationally. Operating profit of $79.0 million decreased 2.1 percent YoY, while operating margin of 19.2 percent dipped 30 basis points.
- Repair Systems & Information Group sales of $343.1 million increased 1.5 percent YoY, including a $0.1 million organic sales gain. Organic sales were higher for diagnostic and repair information products to independent repair shop owners and managers, largely offset by decreased sales of undercar equipment, while sales to OEM dealerships were flat. Operating profit of $88.7 million increased 7.9 percent, while operating margin of 25.9 percent improved 160 basis points.
- Commercial & Industrial Group sales of $337.8 million increased 9 percent YoY, with organic sales up 4.4 percent. Organic sales growth was driven by customers in critical industries and slightly higher sales in the segment's European-based hand tools business, partially offset by lower sales of power tools.