Diluted EPS of $1.97 for the quarter increases 23.1%;
Operating earnings before financial services of 16.9% of sales in the quarter improves 140 basis points;
Organic sales up 9.8% in the quarter
KENOSHA, Wis. - (BUSINESS WIRE) - Feb. 5, 2015 - 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 2014 operating results for the fourth quarter and full year.
"Our fourth quarter results, including a 9.8% organic increase in net sales, a 140 basis point improvement in operating margin before financial services, and a 23.1% gain in diluted earnings per share, represent an encouraging finish to 2014," said Nick Pinchuk, Snap-on chairman and chief executive officer. "For the full year, despite headwinds, we achieved a 6.9% growth in organic sales and a 20.4% increase in diluted earnings per share, once again confirming the strength of Snap-on’s value proposition to make work easier for serious professionals performing critical tasks in workplaces of consequence. In 2015, we believe we will continue to reach more and more of these professionals by advancing further along each of our runways for coherent growth while, at the same time, making ongoing operating progress through our Snap-on Value Creation Processes in the areas of safety, quality, customer connection, innovation and rapid continuous improvement. As always, I thank our franchisees and associates for their significant contributions to our team. Without their capability and commitment, these results would not have been possible."
Commercial & Industrial Group segment sales of $298.2 million in the quarter increased $15.0 million, or 5.3%, from 2013 levels. Excluding $11.9 million of unfavorable foreign currency translation, organic sales increased $26.9 million, or 9.9%, primarily due to higher volume with customers in critical industries, as well as increased sales in the segment’s European-based hand tools and Asia/Pacific operations.
Operating earnings of $40.5 million in the period increased $3.4 million from 2013 levels, and the operating margin (operating earnings as a percentage of segment sales) of 13.6% improved 50 basis points from 13.1% a year ago.
Snap-on Tools Group segment sales of $387.5 million in the quarter rose $36.4 million, or 10.4%, from 2013 levels, reflecting sales increases in both the company’s U.S. and international franchise operations. Excluding $4.5 million of unfavorable foreign currency translation, organic sales increased 11.8%.
Operating earnings of $63.9 million in the period increased $12.9 million from 2013 levels, and the operating margin of 16.5% improved 200 basis points from 14.5% a year ago.
Repair Systems & Information Group segment sales of $282.8 million in the quarter increased $18.2 million, or 6.9%, from 2013 levels. Excluding $5.7 million of acquisition-related sales and $5.5 million of unfavorable foreign currency translation, organic sales increased $18.0 million, or 6.9%, primarily due to higher sales of undercar equipment, increased sales to OEM dealerships, and higher sales of diagnostic and repair information products to independent repair shop owners and managers.
Operating earnings of $65.2 million in the fourth quarter of 2014 increased $4.4 million from 2013 levels, and the operating margin of 23.1% improved 10 basis points from 23.0% a year ago.
Financial Services operating earnings of $42.2 million on revenue of $59.4 million in the quarter, compared to operating earnings of $33.0 million on revenue of $47.4 million a year ago.
Corporate expenses of $24.4 million in the quarter compared to expenses of $25.3 million last year.
In 2015, Snap-on expects to make continued 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 in critical industries, where the cost and penalties for failure can be high. Through continued deployment of its Snap-on Value Creation Processes, Snap-on also anticipates making further progress in 2015 in the areas of safety, quality, customer connection, innovation and rapid continuous improvement. In pursuit of these initiatives, Snap-on expects that capital expenditures in 2015 will be in a range of $80 million to $90 million. Snap-on also anticipates that its full year 2015 effective income tax rate will be at or below its 2014 full year rate.
Conference Call and Webcast on February 5, 2015, at 9:00 a.m. Central Time
A discussion of this release will be webcast on Thursday, February 5, 2015, 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 http://www.snapon.com/sna and click on the link to the webcast. 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 under the tabs Investor Information / Investor Events / Company Presentations.
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. Products and services include hand and power tools, tool storage, diagnostics software, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as for customers in industries, including aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation and technical education. Snap-on also derives income from various financing programs to facilitate the sales of its products. Products and services are sold through the company’s franchisee, company-direct, distributor and internet channels. Founded in 1920, Snap-on is a $3.3 billion, S&P 500 company headquartered in Kenosha, Wisconsin.
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 28, 2013, 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.
For additional information, please visit www.snapon.com.
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
SOURCE Snap-on Incorporated
Leslie Kratcoski
Snap-on Incorporated
Investor Relations
262/656-6121
Richard Secor
Snap-on Incorporated
Media Relations
262/656-5561
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.