Tools, tool storage and automotive repair products maker Snap-on reported its 2020 third quarter financial results on Thursday, which showed a considerable rebound from a downtrodden Q2 hit hard by business impacts from the COVID-19 pandemic.
The Kenosha, WI-based company reported Q3 total sales of $942 million, up 4.4 percent year-over-year, with organic sales up 3.8 percent. That compares respective declines of 23.9 and 22.9 percent in Q2.
The company's Q3 operating profit of $186 million improved 10.7 percent YoY and from $149 million in Q2, while total Q3 net profit of $180 million improved from $165 million a year earlier and $106 million in Q2.
By Snap-on business segment in Q3:
- Commercial & Industrial sales of $308.4 million were down 8.0 percent YoY, with organic sales down 8.6 percent. Sequentially, sales were up 17.8 percent from Q2, while Q3 operating profit of $43 million jumped from $23 million in Q2.
- Snap-on Tools Group sales of $450 million jumped 16.8 percent YoY, with organic sales up 16.2 percent. Sequentially, sales spiked 39.3 percent from Q2, while Q3 operating profit of $87 million more than doubled that of Q2's $38 million.
- Repair Systems & Information Group sales of $317.5 million fell 1.6 percent YoY, with organic sales down 2.2 percent. Sequentially, sales jumped 29.6 percent from Q2, while operating profit of $80 million was up from $51 million in Q2.
"We’re encouraged by Snap-on’s third quarter, which included sequential improvements in each of our operations, as well as overall year-over-year progress,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “The momentum we experienced in the month of June continued in the period, confirming the ongoing accommodation to the virus as we deploy measures to proceed safely in the COVID-19 environment."
On Sept. 29, Snap-on announced it had acquired AutoCrib, a well-known provider of industrial vending solutions, for approximately $36 million. Known as one of the pioneers of industrial vending, Tustin, CA-based AutoCrib has been a designer, manufacturer and marketer of the technology since 1995. AutoCrib will become part of the tools, tool storage and repair systems manufacturer’s Commercial & Industrial Group effective with Snap-on’s fiscal fourth quarter. AutoCrib had 2019 sales of approximately $30 million.