Sales rise up 7.5% but tools struggle for Snap-on

Q4 and 2017 sales rose for Snap-on last year, but the US tools side of the business dropped slightly for the owner of BAHCO, Norbar Torque Tools and many others.

Q4 net sales increased $84.8 million (9.5%) to $974.6 million – $38.9 million of which was organic, $29.7m was acquisition-related and a whopping $16.2 million came thanks to favourable foreign currency translation.

Full year net sales grew $256.5 million (7.5%) to $3,686.9 million – $115 million was through organic sales and $141.5 million through acquisition-related sales.

Lower US sales for tools

Snap-on Tools Group segment sales of $409.2 million in Q4 fell $8.3 million (2.0%) from 2016 levels, reflecting a $12.6 million, or 3%, organic sales decline, partially offset by $4.3 million of favourable foreign currency translation. The organic sales decrease included lower sales in the US franchise operations, partially offset by gains in the international franchise operations.

“We’re encouraged by our fourth quarter and full year 2017 results,” said Nick Pinchuk, Snap-on Chairman and CEO. “Our Q4 net sales growth of 9.5%, or 4.3% organically, was the highest of any quarter in 2017, with further progress along our runways for growth in both the Commercial & Industrial Group and the Repair Systems & Information Group more than offsetting continuing sales headwinds in the Snap-on Tools Group…

“We believe Snap-on’s value proposition of making work easier for serious professionals performing critical tasks remains strong in the end markets we serve and as we enter 2018, we intend to strengthen further our position by enhancing the franchise network, expanding in the vehicle repair garage, extending to critical industries and building in emerging markets. Finally, our progress in 2017 would not have been possible without the capability and commitment of our franchisees and associates, and I thank them for their dedication and their contributions.”

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