KENOSHA, Wis. — Snap-on Inc., a leading manufacturer of tools, equipment, diagnostics, repair information and systems solutions, announced operating results for the second quarter of 2023.
Net sales of $1,191.3 million in the second quarter of 2023 represented an increase of $54.7 million, or 4.8%, from 2022 levels, reflecting a $63.0 million, or 5.6%, organic sales gain, partially offset by $8.3 million of unfavorable foreign currency translation.
Operating earnings before financial services for the quarter of $277.0 million compared to $246.6 million in 2022. As a percentage of net sales, operating earnings before financial services of 23.3% in the second quarter compared to 21.7% last year, reflecting an improvement of 160 basis points.
Financial services revenue in the quarter of $93.4 million compared to $86.4 million in 2022; financial services operating earnings of $66.9 million compared to $65.3 million last year.
Consolidated operating earnings for the quarter of $343.9 million, or 26.8% of revenues (net sales plus financial services revenue), compared to $311.9 million, or 25.5% of revenues, last year.
The second quarter effective income tax rate was 22.9% in 2023 and 23.8% in 2022.
Net earnings in the quarter of $264.0 million, or $4.89 per diluted share, compared to net earnings of $231.5 million, or $4.27 per diluted share, a year ago.
“Our performance was again encouraging, demonstrating the broad and substantial strength of our enterprise, driving ongoing overall momentum in sales, in profitability, and in earnings, all achieved quarter by quarter in a range of environments,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “Today’s results confirm the wide opportunities along our runways for both growth and improvement.
"While activity may vary from period to period, we believe we are well positioned in our automotive repair operations, by enhancing the van channel and expanding with repair shop owners and managers, and in our activities outside the garage, by consistently extending our businesses serving critical industries. At the same time, we also have extraordinary confidence in our Snap-on Value Creation Processes that have authored continuing improvement and have emphatically reaffirmed that power this quarter, delivering earnings advancements of considerable proportion in each of our operating segments. And, we believe that with this proven and effective approach we will maintain that positive trajectory as we proceed on through the days to come. Finally, I want to thank our franchisees and associates worldwide for their steadfast contributions, for their uninterrupted dedication, and for their deep enthusiasm for our path forward.”
