US-registered Snap-On saw net sales grew 8.4% in Q3 2017, up $69.7 million to $903.8 million.
In organic terms, that number was a more modest 2.3% rise or $19.5 million gain, with $44.3 million of acquisition-related sales and $5.9 million of favourable foreign currency translation.
Tools down
Snap-on Tools Group segment sales of $392.7 million in the quarter decreased $4.5 million, or 1.1%, from 2016 levels, reflecting a $6.5 million, or 1.6%, organic sales decline, partially offset by $2.0 million of favorable foreign currency translation.
The organic sales decrease includes lower sales in the company’s US franchise operations, partially offset by gains in the international franchise operations. Operating earnings of $56.3 million in the period, including $2.3 million of unfavourable foreign currency effects, decreased $8.3 million from 2016 levels, and the operating margin of 14.3% compared to 16.3% a year ago.
CEO statement
“We’re encouraged that in the third quarter we increased both sales and net earnings through our steadfast commitment to our runways for growth and improvement, despite challenges on a variety of fronts, including the recent hurricanes,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “We believe Snap-on’s value proposition of making work easier for serious professionals remains strong in both automotive repair and the other end markets we serve and that there remains significant opportunity along each of our runways for growth: enhance the franchise network, expand with repair shop owners and managers, extend in critical industries and build in emerging markets. Our results are only possible with the significant effort and contributions from our franchisees and associates worldwide; I thank them for their ongoing dedication and commitment.”
Snap-on's Franchisee Conference in Dallas, Texas saw over 8,000 attendees. Snap-on is headquartered in Kenosha, Wisconsin.
