Tools, tool storage and automotive repair products manufacturer Snap-on reported its 2021 second quarter financial results on Thursday, showing that underlying sales surged during the April-June period.
The company posted total Q2 sales of $1.081 billion, up 49.3 percent year-over-year and up from $1.025 billion in Q1. Organically, Q2 sales surged 42.5 percent year-over-year — a significant acceleration from a 16.3 percent year-over-year organic sales gain in Q1. Snap-on also provided context in the form of comparing Q2 sales to the same quarter in 2019, showing that total sales increased 13.7 percent and organic sales increased 9.3 percent.
Kenosha, WI-based Snap-on's Q1 operating profit of $217 million dwarfed the $91 million of a year earlier, and was down from the $266 million seen in Q1 of this year. Excluding 2020 restructuring costs, Q2 operating profit increased 128 percent year-over-year. Q2 total profit of $208 million more than doubled the $101 million of a year earlier and improved sequentially from $193 million in Q1.
"Our performance demonstrates the varied and abundant opportunities along our runways for growth and our ability to improve our operations throughout the challenges of the COVID environment," said Nick Pinchuk, Snap-on chairman and CEO. "In comparison to the pre-virus second quarter of 2019, we believe our results, particularly in the Snap-on Tools Group, trace a positive onward trend, clearly confirming the resilience of our markets and the strength of our operations, and emphatically testifying to our capabilities in pursuing existing and new possibilities going forward."
By Snap-on business segment in Q2:
Commercial & Industrial sales of $350.5 million increased 33.8 percent year-over-year, with organic sales up 26.3 percent. That compares with Q1 sales that were up 15.3 percent year-over-year and up 9.5 percent organically. Compared to 2019, Q2 sales increased 4.6 percent overall and 0.4 percent organically. Operating profit of $55.5 million more than doubled the $22.9 million of a year earlier, while operating margin of 15.8 percent improved from 8.7 percent of a year earlier and 14.7 percent in Q1.
Snap-on Tools Group sales of $484 million increased 49.8 percent year-over-year, with organic sales up 46.7 percent. That compares with Q1 sales that were up 27.2 percent year-over-year and up 25.0 percent organically. Compared to 2019, Q2 sales grew 19.3 percent year-over-year, with organic sales up 19.3 percent. Q2 operating profit of $103.5 million dwarfed the $38 million of a year earlier and improved from $99 million in Q1, while Q2 operation margin of 21.4 percent nearly doubled the 11.9 percent of a year earlier and improved from 20.7 percent in Q1.
Repair Systems & Information Group sales of $399 million jumped 62.7 percent year-over-year, with organic sales up 54.1 percent. That compares with Q1 sales that were up 10.5 percent year-over-year and up 7.6 percent organically. Compared to 2019, Q2 sales grew 14.2 percent year-over-year, with organic sales up 8.4 percent. Q2 operating profit of $87 million was up from $51 million of a year earlier and improved from $81 million in Q1, with operating margin of 21.8 percent up from 20.7 percent of a year earlier and down from 23.4 percent in Q1.