Snap-on Announces Second Quarter 2024 Results

Rhea-AI Summary

Snap-on Incorporated (NYSE: SNA) reported Q2 2024 results with diluted EPS of $5.07, including a $0.16 per share benefit from legal payments, compared to $4.89 in Q2 2023. Net sales decreased by 1.0% to $1,179.4 million, reflecting a 1.1% organic sales decline and unfavorable foreign currency translation. Operating margin before financial services improved to 23.8% from 23.3% last year. The company saw growth in critical industries and increased activity with OEM dealerships, while experiencing declines in the Snap-on Tools segment. Financial services revenue increased to $100.5 million. Snap-on expects ongoing progress in its growth initiatives and projects 2024 capital expenditures of $100-110 million, with a full-year effective income tax rate of 22-23%.

Positive

• Diluted EPS increased to $5.07 from $4.89 in Q2 2023
• Operating margin before financial services improved to 23.8% from 23.3%
• Financial services revenue grew to $100.5 million from $93.4 million
• Commercial & Industrial Group segment saw 1.2% organic sales growth
• Repair Systems & Information Group reported 1.0% organic sales increase

Negative

• Net sales decreased by 1.0% to $1,179.4 million
• Organic sales declined by 1.1%
• Snap-on Tools Group segment sales decreased by 7.7% organically
• Unfavorable foreign currency translation impacted sales negatively
• Originations in Financial Services decreased by 5.6% to $308.1 million

Insights

Financial Analyst

Snap-on's second-quarter results show a mixed bag with a slight decline in net sales but improvements in operating margins and earnings per share. The net sales of $1,179.4 million show a 1.0% decrease compared to the previous year. Declining sales could generally be perceived negatively; however, more nuanced analysis reveals underlying strengths.

First, the operating margin before financial services improved to 23.8% from 23.3%, indicating effective cost management. This shows the company’s ability to maintain profitability even with slightly lower sales.

Earnings per share (EPS) increased to $5.07 from $4.89, partly due to a legal payment benefit. Excluding this one-time benefit, the EPS growth is modest. This signals that while the company is navigating through challenges, it has managed to maintain profitability, which is reassuring for long-term investors.

The financial services segment also performed well, showing a rise in both revenues and operating earnings, which could be indicative of strong underlying demand in this segment. Investors should note that financial services contributed significantly to consolidated operating earnings.

Overall, while top-line growth remains a concern, the bottom-line improvements and robust financial services segment indicate operational strength. This makes the stock relatively stable in the short term, but investors should keep an eye on sales trends as a key performance metric going forward.

Market Research Analyst

Snap-on’s performance in different segments provides important context for investors. The Commercial & Industrial Group saw a slight organic sales gain, driven by higher activity in critical industries. This segment's improvement in operating margin to 16.7% from 16.0% suggests efficiency gains, likely due to better cost control and operational improvements.

However, the Snap-on Tools Group faced a 7.7% organic sales decline, primarily from U.S. operations. This could signal market saturation or increasing competition. The decline in operating margins from 26.3% to 23.8% here is worrisome, as it indicates reduced profitability in one of its core areas.

The Repair Systems & Information Group showed steady performance with a 1.0% organic sales increase. The rise in operating margin to 25.0% from 24.4% indicates that this segment is capitalizing well on market opportunities, especially with OEM dealerships.

Geographical and product diversification appears to be working in favor of Snap-on in certain segments but not uniformly. Investors should consider the regional performance and specific segment dynamics when evaluating future growth prospects.

Diluted EPS of $5.07, including a $0.16 per share benefit from a legal payment, compares to $4.89 in Q2 2023;

Operating margin before financial services of 23.8% compares to 23.3% in Q2 2023;

Sales of $1,179.4 million compares to $1,191.3 million in Q2 2023

KENOSHA, Wis.--(BUSINESS WIRE)-- Snap-on Incorporated (NYSE: SNA), a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks, today announced operating results for the second quarter of 2024.

• Net sales of $1,179.4 million in the second quarter of 2024 represented a decrease of $11.9 million, or 1.0%, from 2023 levels, reflecting a $13.5 million, or 1.1%, organic sales decline and $5.7 million of unfavorable foreign currency translation, partially offset by $7.3 million of acquisition-related sales.

• Operating earnings before financial services for the quarter of $280.3 million compared to $277.0 million in 2023. As a percentage of net sales, operating earnings before financial services were 23.8% in the second quarter compared to 23.3% last year.

• Financial services revenue in the quarter of $100.5 million compared to $93.4 million in 2023; financial services operating earnings of $70.2 million compared to $66.9 million last year.

• Consolidated operating earnings for the quarter of $350.5 million, or 27.4% of revenues (net sales plus financial services revenue), compared to $343.9 million, or 26.8% of revenues, last year.

• The second quarter effective income tax rate was 22.6% in 2024 and 22.9% in 2023.

• Net earnings in the quarter of $271.2 million, or $5.07 per diluted share, compared to net earnings of $264.0 million, or $4.89 per diluted share, a year ago.

• In the quarter, operating earnings before financial services and consolidated operating earnings included an $11.2 million benefit for the final payments received associated with a legal matter (the “legal payments”); net earnings included an $8.7 million, or $0.16 per diluted share, after-tax benefit from the legal payments.

See “Non-GAAP Measures” below for a definition of, and further explanation about, organic sales.

“While the general uncertainty continues, we’re encouraged by our second quarter 2024 results,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “There have been challenges but, at the same time, there have been substantial opportunities along our runways for growth. And, we’ve taken direct advantage, producing positive contributions to our way forward, as clearly demonstrated by our ongoing progress with customers in critical industries and with repair shop owners and managers. In our Snap-on Tools van channel, we remain focused on matching current technician preferences by introducing new, shorter payback solutions and on fully supporting our franchisees during this unsettled interlude. We are also committed to forging ahead, by engaging our Snap-on Value Creation Processes, driving advancements and improvements, and we believe those gains, when combined with our possibilities for growth, will maintain and increase our momentum as we proceed to the future. Finally, as I’ve said before, the strength of our corporation is dependent on the experience and capability of Snap-on people worldwide. I want to thank both our franchisees and our associates for their valuable efforts on behalf of our company, for their steadfast dedication to our team, and for their unwavering belief in our days and years to come.”

Segment Results

Commercial & Industrial Group segment sales of $372.0 million in the quarter compared to $364.2 million last year, reflecting a $4.3 million, or 1.2%, organic sales gain and $7.3 million of acquisition-related sales, partially offset by $3.8 million of unfavorable foreign currency translation. The organic increase is primarily due to higher activity with customers in critical industries, partially offset by declines in both the segment’s power tool and European-based hand tool operations.

Operating earnings of $62.2 million in the period compared to $58.1 million in 2023. The operating margin (operating earnings as a percentage of segment sales) improved 70 basis points to 16.7% in the quarter from 16.0% last year.

Snap-on Tools Group segment sales of $482.0 million in the quarter compared to $523.1 million last year, reflecting a $40.3 million, or 7.7%, organic sales decline and $0.8 million of unfavorable foreign currency translation. The organic decrease is due to lower activity in the U.S. operations, partially offset by higher sales in the segment’s international operations.

Operating earnings of $114.8 million in the period compared to $137.7 million in 2023. The operating margin of 23.8% compared to 26.3% a year ago.

Repair Systems & Information Group segment sales of $454.8 million in the quarter compared to $452.0 million last year, reflecting a $4.3 million, or 1.0%, organic sales increase, partially offset by $1.5 million of unfavorable foreign currency translation. The organic gain includes increased activity with OEM dealerships, partially offset by lower sales of diagnostic and information products to independent repair shop owners and managers.

Operating earnings of $113.6 million in the period compared to $110.4 million in 2023. The operating margin improved 60 basis points to 25.0% in the quarter from 24.4% last year.

Financial Services operating earnings of $70.2 million on revenue of $100.5 million in the quarter compared to operating earnings of $66.9 million on revenue of $93.4 million a year ago. Originations of $308.1 million in the second quarter represented a decrease of $18.2 million, or 5.6%, from 2023 levels.

Corporate expenses in the second quarter of $10.3 million, including benefits from the legal payments, compared to $29.2 million last year.

Outlook

We believe that our markets and our operations possess and have demonstrated continuing and considerable resilience against the uncertainties of the current environment. In 2024, Snap-on expects to make ongoing progress along its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena and developing and expanding its professional customer base, not only in automotive repair, but in adjacent markets, additional geographies and other areas, including extending in critical industries, where the cost and penalties for failure can be high. In pursuit of these initiatives, we project that capital expenditures in 2024 will be in the range of $100 million to $110 million, of which $45.0 million was incurred in the first six months of the year.

Snap-on currently anticipates that its full-year 2024 effective income tax rate will be in the range of 22% to 23%.

Conference Call and Webcast on July 18, 2024, at 9:00 a.m. Central Time

A discussion of this release will be webcast on Thursday, July 18, 2024, at 9:00 a.m. Central Time, and a replay will be available for at least 10 days following the call. To access the webcast, visit https://www.snapon.com/EN/Investors/Investor-Events and click on the link to the call. The slide presentation accompanying the call can be accessed under the Downloads tab in the webcast viewer, as well as on the Snap-on website at https://www.snapon.com/EN/Investors/Financial-Information/Quarterly-Earnings.

Non-GAAP Measures

References in this release to “organic sales” refer to sales from continuing operations calculated in accordance with generally accepted accounting principles in the United States (“GAAP”), adjusted to exclude acquisition-related sales and the impact of foreign currency translation. Management evaluates the company’s sales performance based on organic sales growth, which primarily reflects growth from the company’s existing businesses as a result of increased output, expanded customer base, geographic expansion, new product development and pricing changes, and excludes sales contributions from acquired operations the company did not own as of the comparable prior-year reporting period. Organic sales also exclude the effects of foreign currency translation as foreign currency translation is subject to volatility that can obscure underlying business trends. Management believes that the non-GAAP financial measure of organic sales is meaningful to investors as it provides them with useful information to aid in identifying underlying growth trends in the company’s businesses and facilitates comparisons of its sales performance with prior periods.

About Snap-on

Snap-on Incorporated is a leading global innovator, manufacturer, and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks including those working in vehicle repair, aerospace, the military, natural resources, and manufacturing. From its founding in 1920, Snap-on has been recognized as the mark of the serious and the outward sign of the pride and dignity working men and women take in their professions. Products and services are sold through the company’s network of widely recognized franchisee vans, as well as through direct and distributor channels, under a variety of notable brands. The company also provides financing programs to facilitate the sales of its products and to support its franchise business. Snap-on, an S&P 500 company, generated sales of $4.7 billion in 2023, and is headquartered in Kenosha, Wisconsin.

Forward-looking Statements

Statements in this news release that are not historical facts, including statements that (i) are in the future tense; (ii) include the words “expects,” “anticipates,” “intends,” “approximates,” or similar words that reference Snap-on or its management; (iii) are specifically identified as forward-looking; or (iv) describe Snap-on’s or management’s future outlook, plans, estimates, objectives or goals, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Snap-on cautions the reader that this news release may contain statements, including earnings projections, that are forward-looking in nature and were developed by management in good faith and, accordingly, are subject to risks and uncertainties regarding Snap-on’s expected results that could cause (and in some cases have caused) actual results to differ materially from those described or contemplated in any forward-looking statement. Factors that may cause the company’s actual results to differ materially from those contained in the forward-looking statements include those found in the company’s reports filed with the Securities and Exchange Commission, including the information under the “Safe Harbor” and “Risk Factors” headings in its Annual Report on Form 10-K for the fiscal year ended December 30, 2023, which are incorporated herein by reference. Snap-on disclaims any responsibility to update any forward-looking statement provided in this news release, except as required by law.

SNAP-ON INCORPORATED
Condensed Consolidated Statements of Earnings
(Amounts in millions, except per share data)
(unaudited)
		Three Months Ended								Six Months Ended
		June 29,				July 1,				June 29,				July 1,
		2024				2023				2024				2023
Net sales		$	1,179.4			$	1,191.3			$	2,361.7			$	2,374.3
Cost of goods sold			(582.1	)			(587.6	)			(1,167.7	)			(1,181.0	)
Gross profit			597.3				603.7				1,194.0				1,193.3
Operating expenses			(317.0	)			(326.7	)			(642.8	)			(656.5	)
Operating earnings before financial services			280.3				277.0				551.2				536.8
Financial services revenue			100.5				93.4				200.1				186.0
Financial services expenses			(30.3	)			(26.5	)			(61.6	)			(52.8	)
Operating earnings from financial services			70.2				66.9				138.5				133.2
Operating earnings			350.5				343.9				689.7				670.0
Interest expense			(12.3	)			(12.6	)			(24.8	)			(25.0	)
Other income (expense) – net			18.7				16.8				36.8				32.0
Earnings before income taxes			356.9				348.1				701.7				677.0
Income tax expense			(79.3	)			(78.2	)			(154.5	)			(152.8	)
Net earnings			277.6				269.9				547.2				524.2
Net earnings attributable to noncontrolling interests			(6.4	)			(5.9	)			(12.5	)			(11.5	)
Net earnings attributable to Snap-on Inc.		$	271.2			$	264.0			$	534.7			$	512.7
Net earnings per share attributable to Snap-on Inc.:
Basic		$	5.15			$	4.98			$	10.15			$	9.67
Diluted			5.07				4.89				9.98				9.49
Weighted-average shares outstanding:
Basic			52.7				53.0				52.7				53.0
Effect of dilutive securities			0.8				1.0				0.9				1.0
Diluted			53.5				54.0				53.6				54.0

SNAP-ON INCORPORATED
Supplemental Segment Information
(Amounts in millions)
(unaudited)
		Three Months Ended								Six Months Ended
		June 29,				July 1,				June 29,				July 1,
		2024				2023				2024				2023
Net sales:
Commercial & Industrial Group		$	372.0			$	364.2			$	731.9			$	728.0
Snap-on Tools Group			482.0				523.1				982.1				1,060.1
Repair Systems & Information Group			454.8				452.0				918.6				898.6
Segment net sales			1,308.8				1,339.3				2,632.6				2,686.7
Intersegment eliminations			(129.4	)			(148.0	)			(270.9	)			(312.4	)
Total net sales			1,179.4				1,191.3				2,361.7				2,374.3
Financial Services revenue			100.5				93.4				200.1				186.0
Total revenues		$	1,279.9			$	1,284.7			$	2,561.8			$	2,560.3
Operating earnings:
Commercial & Industrial Group		$	62.2			$	58.1			$	117.6			$	113.9
Snap-on Tools Group			114.8				137.7				232.1				269.4
Repair Systems & Information Group			113.6				110.4				226.5				215.0
Financial Services			70.2				66.9				138.5				133.2
Segment operating earnings			360.8				373.1				714.7				731.5
Corporate			(10.3	)			(29.2	)			(25.0	)			(61.5	)
Operating earnings			350.5				343.9				689.7				670.0
Interest expense			(12.3	)			(12.6	)			(24.8	)			(25.0	)
Other income (expense) – net			18.7				16.8				36.8				32.0
Earnings before income taxes		$	356.9			$	348.1			$	701.7			$	677.0

SNAP-ON INCORPORATED
Condensed Consolidated Balance Sheets
(Amounts in millions)
(unaudited)
		June 29,				December 30,
		2024				2023
Assets
Cash and cash equivalents		$	1,232.7			$	1,001.5
Trade and other accounts receivable – net			783.5				791.3
Finance receivables – net			617.9				594.1
Contract receivables – net			112.0				120.8
Inventories – net			965.0				1,005.9
Prepaid expenses and other current assets			147.0				138.4
Total current assets			3,858.1				3,652.0
Property and equipment – net			538.7				539.3
Operating lease right-of-use assets			74.9				74.7
Deferred income tax assets			78.9				76.0
Long-term finance receivables – net			1,301.4				1,284.2
Long-term contract receivables – net			417.4				407.9
Goodwill			1,067.9				1,097.4
Other intangible assets – net			274.8				268.9
Pension assets			130.9				130.5
Other long-term assets			16.9				14.0
Total assets		$	7,759.9			$	7,544.9
Liabilities and Equity
Notes payable		$	15.7			$	15.6
Accounts payable			271.1				238.0
Accrued benefits			54.4				64.4
Accrued compensation			74.2				102.9
Franchisee deposits			76.8				73.3
Other accrued liabilities			457.9				447.4
Total current liabilities			950.1				941.6
Long-term debt			1,185.1				1,184.6
Deferred income tax liabilities			84.2				79.2
Retiree health care benefits			20.7				21.8
Pension liabilities			69.3				82.3
Operating lease liabilities			54.8				54.6
Other long-term liabilities			86.8				87.4
Total liabilities			2,451.0				2,451.5
Equity
Shareholders' equity attributable to Snap-on Inc.
Common stock			67.5				67.5
Additional paid-in capital			542.8				545.5
Retained earnings			7,286.0				6,948.5
Accumulated other comprehensive loss			(504.8	)			(449.5	)
Treasury stock at cost			(2,105.2	)			(2,040.7	)
Total shareholders' equity attributable to Snap-on Inc.			5,286.3				5,071.3
Noncontrolling interests			22.6				22.1
Total equity			5,308.9				5,093.4
Total liabilities and equity		$	7,759.9			$	7,544.9

SNAP-ON INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Amounts in millions)
(unaudited)
		Three Months Ended
		June 29,				July 1,
		2024				2023
Operating activities:
Net earnings		$	277.6			$	269.9
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation			18.2				17.8
Amortization of other intangible assets			6.4				7.0
Provision for losses on finance receivables			17.2				13.7
Provision for losses on non-finance receivables			6.9				3.8
Stock-based compensation expense			6.0				10.2
Deferred income tax benefit			(6.0	)			(9.0	)
Gain on sales of assets			(0.1	)			(0.1	)
Changes in operating assets and liabilities, net of effects of acquisitions:
Trade and other accounts receivable			27.1				(7.8	)
Contract receivables			0.3				(3.1	)
Inventories			(0.2	)			(0.2	)
Prepaid expenses and other current assets			(8.4	)			12.5
Accounts payable			14.8				(7.8	)
Accrued and other liabilities			(58.7	)			(36.6	)
Net cash provided by operating activities			301.1				270.3
Investing activities:
Additions to finance receivables			(256.2	)			(279.2	)
Collections of finance receivables			215.0				210.6
Capital expenditures			(23.2	)			(25.8	)
Disposals of property and equipment			0.5				0.5
Other			3.7				(0.7	)
Net cash used by investing activities			(60.2	)			(94.6	)
Financing activities:
Net increase (decrease) in other short-term borrowings			0.8				(0.5	)
Cash dividends paid			(98.0	)			(85.9	)
Purchases of treasury stock			(47.4	)			(94.8	)
Proceeds from stock purchase plans and stock option exercises			23.4				51.8
Other			(6.7	)			(7.1	)
Net cash used by financing activities			(127.9	)			(136.5	)
Effect of exchange rate changes on cash and cash equivalents			(1.3	)			(1.7	)
Increase in cash and cash equivalents			111.7				37.5
Cash and cash equivalents at beginning of period			1,121.0				833.8
Cash and cash equivalents at end of period		$	1,232.7			$	871.3
Supplemental cash flow disclosures:
Cash paid for interest		$	(8.3	)		$	(8.7	)
Net cash paid for income taxes			(139.0	)			(134.4	)

SNAP-ON INCORPORATED
Condensed Consolidated Statements of Cash Flows
(Amounts in millions)
(unaudited)
		Six Months Ended
		June 29,				July 1,
		2024				2023
Operating activities:
Net earnings		$	547.2			$	524.2
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation			36.4				35.8
Amortization of other intangible assets			12.7				13.9
Provision for losses on finance receivables			35.4				27.9
Provision for losses on non-finance receivables			11.8				8.8
Stock-based compensation expense			15.8				20.4
Deferred income tax benefit			(4.4	)			(9.2	)
Gain on sales of assets			(0.3	)			(0.3	)
Changes in operating assets and liabilities, net of effects of acquisitions:
Trade and other accounts receivable			(20.8	)			(30.7	)
Contract receivables			(3.7	)			(2.9	)
Inventories			21.9				(13.4	)
Prepaid expenses and other current assets			(11.9	)			14.2
Accounts payable			38.1				(8.3	)
Accrued and other liabilities			(28.4	)			(8.5	)
Net cash provided by operating activities			649.8				571.9
Investing activities:
Additions to finance receivables			(504.2	)			(536.3	)
Collections of finance receivables			422.8				418.1
Capital expenditures			(45.0	)			(48.8	)
Disposals of property and equipment			1.6				1.0
Other			1.4				(1.5	)
Net cash used by investing activities			(123.4	)			(167.5	)
Financing activities:
Net increase in other short-term borrowings			0.4				0.3
Cash dividends paid			(196.2	)			(172.0	)
Purchases of treasury stock			(117.6	)			(182.0	)
Proceeds from stock purchase plans and stock option exercises			51.7				84.6
Other			(30.4	)			(19.5	)
Net cash used by financing activities			(292.1	)			(288.6	)
Effect of exchange rate changes on cash and cash equivalents			(3.1	)			(1.7	)
Increase in cash and cash equivalents			231.2				114.1
Cash and cash equivalents at beginning of year			1,001.5				757.2
Cash and cash equivalents at end of period		$	1,232.7			$	871.3
Supplemental cash flow disclosures:
Cash paid for interest		$	(22.0	)		$	(22.3	)
Net cash paid for income taxes			(153.7	)			(147.7	)

Non-GAAP Supplemental Data

The following non-GAAP supplemental data is presented for informational purposes to provide readers with insight into the information used by management for assessing the operating performance of Snap-on Incorporated's ("Snap-on") non-financial services ("Operations") and Financial Services businesses.

The supplemental Operations data reflects the results of operations and financial position of Snap-on's tools, diagnostics, equipment products, software and other non-financial services operations with Financial Services presented on the equity method. The supplemental Financial Services data reflects the results of operations and financial position of Snap-on's U.S. and international financial services operations. The financing needs of Financial Services are met through intersegment borrowings and cash generated from Operations; Financial Services is charged interest expense on intersegment borrowings at market rates. Income taxes are charged to Financial Services on the basis of the specific tax attributes generated by the U.S. and international financial services businesses. Transactions between the Operations and Financial Services businesses are eliminated to arrive at the Condensed Consolidated Financial Statements.

SNAP-ON INCORPORATED
Non-GAAP Supplemental Consolidating Data - Supplemental Condensed Statements of Earnings
(Amounts in millions)
(unaudited)
		Operations*								Financial Services
		Three Months Ended								Three Months Ended
		June 29,				July 1,				June 29,				July 1,
		2024				2023				2024				2023
Net sales		$	1,179.4			$	1,191.3			$	—			$	—
Cost of goods sold			(582.1	)			(587.6	)			—				—
Gross profit			597.3				603.7				—				—
Operating expenses			(317.0	)			(326.7	)			—				—
Operating earnings before financial services			280.3				277.0				—				—
Financial services revenue			—				—				100.5				93.4
Financial services expenses			—				—				(30.3	)			(26.5	)
Operating earnings from financial services			—				—				70.2				66.9
Operating earnings			280.3				277.0				70.2				66.9
Interest expense			(12.3	)			(12.6	)			—				—
Intersegment interest income (expense) – net			17.1				16.1				(17.1	)			(16.1	)
Other income (expense) – net			18.7				16.7				—				0.1
Earnings before income taxes and equity earnings			303.8				297.2				53.1				50.9
Income tax expense			(65.0	)			(65.0	)			(14.3	)			(13.2	)
Earnings before equity earnings			238.8				232.2				38.8				37.7
Financial services – net earnings attributable to Snap-on			38.8				37.7				—				—
Net earnings			277.6				269.9				38.8				37.7
Net earnings attributable to noncontrolling interests			(6.4	)			(5.9	)			—				—
Net earnings attributable to Snap-on		$	271.2			$	264.0			$	38.8			$	37.7
* Snap-on with Financial Services presented on the equity method.

SNAP-ON INCORPORATED
Non-GAAP Supplemental Consolidating Data - Supplemental Condensed Statements of Earnings
(Amounts in millions)
(unaudited)
		Operations*								Financial Services
		Six Months Ended								Six Months Ended
		June 29,				July 1,				June 29,				July 1,
		2024				2023				2024				2023
Net sales		$	2,361.7			$	2,374.3			$	—			$	—
Cost of goods sold			(1,167.7	)			(1,181.0	)			—				—
Gross profit			1,194.0				1,193.3				—				—
Operating expenses			(642.8	)			(656.5	)			—				—
Operating earnings before financial services			551.2				536.8				—				—
Financial services revenue			—				—				200.1				186.0
Financial services expenses			—				—				(61.6	)			(52.8	)
Operating earnings from financial services			—				—				138.5				133.2
Operating earnings			551.2				536.8				138.5				133.2
Interest expense			(24.8	)			(25.0	)			—				—
Intersegment interest income (expense) – net			33.8				31.8				(33.8	)			(31.8	)
Other income (expense) – net			36.7				31.9				0.1				0.1
Earnings before income taxes and equity earnings			596.9				575.5				104.8				101.5
Income tax expense			(127.3	)			(126.5	)			(27.2	)			(26.3	)
Earnings before equity earnings			469.6				449.0				77.6				75.2
Financial services – net earnings attributable to Snap-on			77.6				75.2				—				—
Net earnings			547.2				524.2				77.6				75.2
Net earnings attributable to noncontrolling interests			(12.5	)			(11.5	)			—				—
Net earnings attributable to Snap-on		$	534.7			$	512.7			$	77.6			$	75.2
* Snap-on with Financial Services presented on the equity method.

SNAP-ON INCORPORATED
Non-GAAP Supplemental Consolidating Data - Supplemental Condensed Balance Sheets
(Amounts in millions)
(unaudited)
		Operations*						Financial Services
		June 29,			December 30,			June 29,			December 30,
		2024			2023			2024			2023
Assets
Cash and cash equivalents		$	1,232.6		$	1,001.3		$	0.1		$	0.2
Intersegment receivables			15.6			15.7			—			—
Trade and other accounts receivable – net			782.9			790.6			0.6			0.7
Finance receivables – net			—			—			617.9			594.1
Contract receivables – net			4.7			5.5			107.3			115.3
Inventories – net			965.0			1,005.9			—			—
Prepaid expenses and other current assets			149.7			143.2			10.3			7.4
Total current assets			3,150.5			2,962.2			736.2			717.7
Property and equipment – net			536.2			536.5			2.5			2.8
Operating lease right-of-use assets			74.2			73.8			0.7			0.9
Investment in Financial Services			401.3			393.9			—			—
Deferred income tax assets			52.4			51.3			26.5			24.7
Intersegment long-term notes receivable			821.5			785.6			—			—
Long-term finance receivables – net			—			—			1,301.4			1,284.2
Long-term contract receivables – net			8.3			8.3			409.1			399.6
Goodwill			1,067.9			1,097.4			—			—
Other intangible assets – net			274.8			268.9			—			—
Pension assets			130.9			130.5			—			—
Other long-term assets			34.4			30.2			0.2			0.1
Total assets		$	6,552.4		$	6,338.6		$	2,476.6		$	2,430.0
Liabilities and Equity
Notes payable		$	15.7		$	15.6		$	—		$	—
Accounts payable			270.2			236.2			0.9			1.8
Intersegment payables			—			—			15.6			15.7
Accrued benefits			54.4			64.4			—			—
Accrued compensation			72.4			99.9			1.8			3.0
Franchisee deposits			76.8			73.3			—			—
Other accrued liabilities			439.6			432.2			31.3			27.4
Total current liabilities			929.1			921.6			49.6			47.9
Long-term debt and intersegment long-term debt			—			—			2,006.6			1,970.2
Deferred income tax liabilities			84.2			79.2			—			—
Retiree health care benefits			20.7			21.8			—			—
Pension liabilities			69.3			82.3			—			—
Operating lease liabilities			54.5			54.0			0.3			0.6
Other long-term liabilities			85.7			86.3			18.8			17.4
Total liabilities			1,243.5			1,245.2			2,075.3			2,036.1
Total shareholders' equity attributable to Snap-on			5,286.3			5,071.3			401.3			393.9
Noncontrolling interests			22.6			22.1			—			—
Total equity			5,308.9			5,093.4			401.3			393.9
Total liabilities and equity		$	6,552.4		$	6,338.6		$	2,476.6		$	2,430.0
* Snap-on with Financial Services presented on the equity method.

 

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For additional information, please visit www.snapon.com or contact:

Investors:

Sara Verbsky

262/656-4869

Media:

Samuel Bottum

262/656-5793

Source: Snap-on Incorporated

FAQ

What was Snap-on's (SNA) earnings per share in Q2 2024?

Snap-on (SNA) reported diluted earnings per share of $5.07 in Q2 2024, which included a $0.16 per share benefit from legal payments.

How did Snap-on's (SNA) net sales perform in Q2 2024 compared to Q2 2023?

Snap-on's (SNA) net sales decreased by 1.0% to $1,179.4 million in Q2 2024 compared to $1,191.3 million in Q2 2023.

What was the organic sales growth for Snap-on (SNA) in Q2 2024?

Snap-on (SNA) experienced a 1.1% organic sales decline in Q2 2024.

How did Snap-on's (SNA) operating margin before financial services change in Q2 2024?

Snap-on's (SNA) operating margin before financial services improved to 23.8% in Q2 2024 from 23.3% in Q2 2023.

What is Snap-on's (SNA) projected capital expenditure for 2024?

Snap-on (SNA) projects capital expenditures for 2024 to be in the range of $100 million to $110 million.