Snap-on Inc. has announced operating results for the first quarter of 2021.
Net sales of $1,024.6 million in the first quarter of 2021 increased $172.4 million, or 20.2% from 2020 levels, reflecting a $141.9 million, or 16.3%, organic sales gain, $11.3 million of acquisition-related sales, and $19.2 million of favorable foreign currency translation.
Additionally, net sales in the period increased $102.9 million, or 11.2% from $921.7 million in the first quarter of 2019, reflecting a $76.0 million, or 8.1%, organic sales gain, $15.3 million of acquisition-related sales, and $11.6 million of favorable foreign currency translation.
Operating earnings before financial services for the quarter of $200.9 million, or 19.6% of sales compared to $138.9 million, or 16.3% of sales, in 2020, which included $7.5 million of exit and disposal costs (“restructuring charges”). Excluding the 2020 restructuring charges, operating earnings before financial services in the first quarter of 2021 increased $54.5 million, or 37.2%, from $146.4 million, or 17.2% of sales, as adjusted, last year.
The first quarter effective income tax rate was 23.5% in 2021 and 24.2% in 2020, which included a 10 basis point increase from the restructuring charges.
Net earnings in the quarter of $192.6 million, or $3.50 per diluted share, compared to $137.2 million, or $2.49 per diluted share, a year ago. Excluding the restructuring charges, net earnings in 2020, as adjusted, were $143.2 million, or $2.60 per diluted share. Additionally, reported net earnings in the first quarter of 2019 were $177.9 million, or $3.16 per diluted share; excluding a legal settlement in 2019, net earnings, as adjusted, were $169.2 million, or $3.01 per diluted share.
“We’re encouraged by our first quarter results and with the progress made since the virus first appeared during this period last year,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “Our performance shows significant improvements from the pandemic-shocked first quarter of 2020, and demonstrates our growing accommodation to the virus environment driving an upward trajectory. We also believe the comparisons to pre-pandemic 2019, particularly in the Snap-on Tools Group, clearly testify to the strength and resilience of our markets and operations throughout the challenges of the COVID environment, attest to the continuing opportunities along our varied and abundant runways for growth, and confirm our ability to take full advantage of those possibilities. In pursuit of expanding with repair shop owners and managers, during the quarter we completed the coherent acquisition of Dealer-FX Group, Inc. to extend our strategic visibility into new vehicle technologies and platforms, as well as to enhance our expertise and position with respect to dealership service and repair operations. We continue to build our ongoing advantage in our products, brands and people, further developing the capabilities that enabled our performance in the quarter, and that we believe, will facilitate increased progress as we move forward through 2021. Finally, I want to thank our franchisees and associates worldwide for their ongoing contributions, unfailing dedication, and continued confidence in our future.”
