Kenosha, WI-based hand tools and industrial equipment maker Snap-on reported its 2019 fourth quarter and full-year financial results on Thursday, showing continued flat sales amid an industry-wide slowdown in demand.
The company posted Q4 total sales of $955.2 million, up 0.3 percent year-over-year (YoY), with organic sales up 0.6 percent. Operating profit of $171.4 million was down from $182.1 million of a year earlier, while total profit of $170.6 million was down slightly from $175.0 million of a year earlier.
Comparatively, Q4’s 0.6 percent organic sales gain was down from YoY gains of 1.4, 1.6 percent and 1.4 percent in Q3, Q2 and Q1 2019, respectively.
“We are encouraged by our progress in strengthening our operations in 2019 despite ongoing headwinds from unfavorable currency and economic challenges in certain geographies throughout the year,” said Nick Pinchuk, Snap-on chairman and CEO. “Our results have demonstrated progress along a number of our runways for growth, including within our US franchise network, and reflected the effectiveness of our Snap-on Value Creation Processes to help mitigate the headwinds. Finally, as we begin 2020, our 100th anniversary year, I want to thank our franchisees and associates for their ongoing contributions and to recognize their capabilities and commitment in making our progress possible now and in the future.”
By Snap-on’s business segment in Q4:
- Commercial & Industrial sales of $352.9 million increased 2.7 percent YoY, with organic sales up 3.5 percent. The company said the organic gain included higher sales in power tools and Asia Pacific operations and increases with customers in critical industries, partially offset by lower sales in European-based hand tools. Operating profit of $45.0 million was down from $50.8 million a year earlier.
- Snap-on Tools Group sales of $411.7 million increased 1.1 percent YoY, with organic sales up 1.3 percent. The organic gain included higher sales in the US van network, partially offset by a decrease in international operations. Operating profit of $54.3 million was down $2.7 million from a year earlier.
- Repair Systems & Information Group sales of $335.0 million were down 1.4 percent YoY, with organic sales down 1.5 percent. The organic decrease was driven by lower sales to OEM dealerships, partially offset by higher sales of undercar equipment and increased sales of diagnostics and repair information products to independent repair shop owners and managers. Operating profit of $87.2 million was flat YoY.
For the full year, Snap-on’s 2019 total sales of $3.73 billion decreased 0.3 percent from 2018, with organic sales down 1.2 percent. Operating profit of $962.3 million was up slightly from 2018’s $956.1 million, while total 2019 profit of $693.5 million was up from 2018’s $679.9 million.