Snap-on Incorporated (NYSE:SNA) Q4 2015 Earnings Conference Call - Final Transcript
Feb 04, 2016 • 10:00 am ET
Good day, everyone, and welcome to today's Snap-On, Inc. 2015 Fourth Quarter and Full Year Results Conference. Just as a reminder, today's call is being recorded.
At this time, I'd like to turn the call over to your host for today, Leslie Kratcoski. Please, go ahead.
Thanks, Sarah, and good morning, everyone. Thanks for joining us today to review Snap-On's fourth quarter results, which are detailed in our press release issued earlier this morning.
We have on the call today, Nick Pinchuk, Snap-On's Chief Executive Officer; and Aldo Pagliari, Snap-On's Chief Financial Officer. Nick will kick off our call this morning with his perspective on our performance. Aldo will then provide a more detailed review of our financial results. After Nick provides closing thoughts, we'll take your questions.
As usual, we've provided slides to supplement our discussion. These slides can be accessed under the Downloads tab in the webcast viewer as well as on our website under Investor Information. These slides will be archived on our website along with the transcript of today's call.
Any statements made during this call relative to management's expectations, estimates or beliefs, or otherwise state management's or the company's outlook plans or projections are forward-looking statements and actual results may differ materially from those made in such statements. Additional information and the factors that could cause our results to differ materially from those in the forward-looking statements are contained in our SEC filings.
With that said, I'll now turn the call over to Nick Pinchuk. Nick?
Thanks, Leslie. Good morning, everybody. I'll start with the highlights of our fourth quarter and our year. As usual, I'll give you my perspective on the results, on the environment and on our progress. And after that, Aldo will move into a more detailed review of the financials
The Snap-On fourth quarter; organic sales up and profits well above last year. The period continued our positive trajectory of performance. Again this quarter, we had opportunities and we had headwinds. We took advantage of those opportunities and we overcame the headwinds. Organic sales grew 3.1%. If we include the impact of $33.2 million of unfavorable foreign currency translation, overall sales in the quarter were $851.7 million, a small decrease from last year.
Our EPS was $2.22, up 12.7% from $1.97 in 2014. And that rise reflects an OpCo operating margin of 19.1%, an increase of 220 basis points. Financial service earnings of $45 million in the quarter were also up, leading to a consolidated operating margin, including both financial services and OpCo, of 22.7%, an improvement of 230 basis points. The results were encouraging.
Our markets, the automotive repair-related segments, they continue to be favorable. Changing technologies and aging vehicles are requiring new tools and more repairs. Our Tools Group and our Repair Systems & Information, or the RS&I Group, took advantage of those opportunities and grew across our franchise network and with repair shop owners and managers.
Now, for our Commercial & Industrial Group, or our C&I Group, markets were