Snap-on Incorporated reported diluted earnings per share (EPS) of $4.70 for the third quarter of 2024, marking a 4.2% gain from $4.51 in Q3 2023. Consolidated net sales were $1,147.0 million, a 1.1% decrease compared to $1,159.3 million in the prior year, with organic sales declining by 1.7%.
Despite the sales decrease, the company achieved profitability gains, with the operating margin before financial services increasing by 80 basis points to 22.0%. The Commercial & Industrial Group's operating margin improved by 80 basis points to 16.7%, and the Repair Systems & Information Group's operating margin rose by 110 basis points to 25.4%.
The Snap-on Tools Group experienced a 3.1% organic sales decrease, primarily due to lower activity in U.S. operations, though international operations saw higher sales. Management noted that the pivot to faster payback items gained traction, with Tools Group sales being $18.5 million higher than the second quarter, indicating sequential momentum.
Financial Services operating earnings increased to $71.7 million from $69.4 million a year ago, despite a 5.6% decrease in loan originations to $288.0 million. For the remainder of 2024, Snap-on projects capital expenditures to approximate $100 million and a full-year effective income tax rate in the range of 22% to 23%.
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