Snap-on(SNA)2025-02-13 22:00Financial Performance - Snap-on's consolidated net sales for 2024 reached 4,730.2 million in 2023, but an increase from 1,068.8 million in 2024, representing 22.7% of net sales, an increase from 22.0% in 2023[169]. - Net earnings attributable to Snap-on were 19.51 per diluted share, in 2024, an increase of 0.75 per diluted share compared to 2023[171]. - Consolidated net sales for 2024 were 22.8 million, or 0.5%, from 2023, driven by a 5.5 million of unfavorable foreign currency translation[168]. - Gross profit for 2024 was 28.8 million or 1.2% from 2,546.2 million in sales for 2024, up from 2,399.4 million in 2022[29]. - The diagnostics, information, and management systems category saw sales of 991.2 million in 2023 and 1,133.1 million in 2024, down from 1,151.0 million in 2022[29]. - The Commercial & Industrial Group's net sales were 18.5 million, or 1.3%, from 2023, with operating earnings rising to 1,989.2 million in 2024, down 447.3 million, a decrease of 9.4%[174]. - Segment net sales for the Repair Systems & Information Group reached 16.7 million or 0.9% from 2023, driven by an organic sales gain of $18.1 million or 1.0%[175]. International Operations - The company markets its products in over 130 countries, with the largest market being the United States, followed by significant presence in Europe and Asia Pacific[18]. - Snap-on's revenues from international operations accounted for 29% of total revenues in 2024, highlighting the importance of non-U.S. markets for future growth[87]. Employee and Workforce - Snap-on employed approximately 13,000 people worldwide as of December 28, 2024, with around 7,300 in the United States and 5,700 outside the United States[68]. - The company is committed to employee development, including competitive compensation, performance-based incentives, and various training programs[73]. Environmental and Sustainability Efforts - The company reported total Scope 1 and Scope 2 greenhouse gas emissions of 89,085 metric tons of CO2e in 2024, with an intensity of 18.9 metric tons of CO2e per million in net sales[71]. - Snap-on's sustainability framework aligns with the principles of the International Financial Reporting Standards Foundation, focusing on energy management and employee health and safety[74]. - The company is committed to continuous improvement in operations, including environmental matters, and has implemented policies to reduce its impact on the environment[71]. Risks and Challenges - The company faces risks related to supply chain disruptions, including price inflation and shortages of raw materials, which could impact operational costs[91]. - The ongoing geopolitical situation, including the conflict in Ukraine, poses risks such as supply chain inefficiencies and increased costs for Snap-on[88]. - Legal and regulatory changes, particularly related to sustainability, could impose additional compliance costs and affect business operations[123]. - Economic conditions and world events, including geopolitical conflicts and supply chain inefficiencies, may negatively impact Snap-on's sales, margins, and net earnings[131]. Cybersecurity - The company's cybersecurity program is designed to detect and respond to threats, with ongoing assessments and testing to ensure effectiveness[136]. - Snap-on's Incident Response Team coordinates responses to cybersecurity incidents, involving cross-functional management and external stakeholders as necessary[137]. - The Audit Committee oversees the management of cybersecurity risks and evaluates the company's risk assessment policies[139]. Strategic Initiatives - The company has expanded its capabilities through coherent acquisitions, enhancing its service offerings to independent repair shops and OEM dealerships[25]. - Snap-on's strategic priorities for 2025 include enhancing the franchise network and expanding into critical industries and emerging markets[164]. - Organic sales growth is a key focus, with management emphasizing the importance of excluding acquisition-related sales and foreign currency translation effects for performance evaluation[167].