Tools, tool storage and automotive repair products manufacturer Snap-on reported its 2021 fourth quarter and full-year financial results on Feb. 3, showing gains in sales and profit during the October-December period, though sales grew at a considerably slower rate than the previous quarter.
The Kenosha, WI-based company posted total Q4 sales of $1.11 billion, up 3.2 percent year-over-year, with organic sales up 2.3 percent. It followed 10.2 percent growth in Q3. On a pre-pandemic comparison vs. 2019, Q4 sales increased 16.0 percent, with organic sales up 13.0 percent.
Snap-on's Q4 operating profit was $232 million on margin of 21.0 percent, up from $216 million and 20.1 percent a year earlier, and from Q3's $201 million and 19.4 percent.
The company's total Q4 net profit of $224 million topped the $209 million it had a year earlier and $196 million in Q3.
"Our fourth quarter performance was encouraging, as it reflects our continued upward trajectory, reaching new heights in sales, profitability and earnings, directly in the face of the ongoing pandemic, rising inflation and varying supply chain inefficiencies,” said Nick Pinchuk, Snap-on chairman and CEO.
For the full-year, Snap-on's 2021 sales totaled $4.25 billion, up 18.4 percent vs. 2020, with organic sales up 15.1 percent. The company's 2021 net profit of $820.5 million, up considerably from 2020's $627 million. Operating profit of $1.12 billion topped 2020's $880.5 million, while net profit of $841 million topped 2020's $646 million.
By Snap-on business segment in Q4:
Commercial & Industrial sales of $359 million dipped 1.6 percent year-over-year, with organic sales down 0.4 percent. The company said the organic decrease primarily reflected lower sales to customers in critical industries. Compared to the pre-pandemic Q4 2019, sales increased 1.6 percent, with organic sales down 1.9 percent. Q4 operating profit of $50 million trailed the $56 million of a year earlier, while operating margin of 14.0 percent likewise trailed the 15.4 percent of a year earlier.
Snap-on Tools Group sales of $505 million increased 2.0 percent year-over-year, with organic sales up 1.6 percent. The company said the organic gain was due to higher activity in U.S. franchise businesses, partially offset by a decrease in international operations. Compared to Q4 2019, sales jumped 22.6 percent, with organic sales up 21.5 percent. Q4 operating profit of $110.5 million topped the $94 million of a year earlier, while operating margin of 21.9 percent likewise topped the 18.9 percent of a year earlier.
Repair Systems & Information Group sales of $392.5 million increased 8.7 percent year-over-year, with organic sales up 5.5 percent. The company attributed the organic gain to higher sales of undercar equipment and diagnostics and repair information products to independent repair shop owners and managers. Compared to Q4 2019, sales increased 17.2 percent, with organic sales up 13.0 percent. Q4 operating profit of $97 million topped the $90 million of a year earlier, while operating margin of 24.8 percent trailed the 24.9 percent of a year earlier.