實耐寶 (SNA) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Snap-on Inc. 2023 Second Quarter Results Conference Call. (Operator Instructions) Please also note that this event is being recorded today. I would now like to turn the conference over to Sara Verbsky, Vice President of Investor Relations. Please go ahead, ma'am.

早上好，歡迎參加 Snap-on Inc. 2023 年第二季度業績電話會議。 （操作員說明）另請注意，今天正在錄製此事件。我現在想將會議交給投資者關係副總裁 Sara Verbsky。請繼續，女士。

Thank you, Joe, and good morning, everyone. We appreciate you joining us today as we review Snap-on's second quarter results, which are detailed in our press release issued earlier this morning. We have on the call 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 some 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, snapon.com, under the Investors section. 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 that otherwise discuss 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.

謝謝你，喬，大家早上好。感謝您今天加入我們，我們將回顧 Snap-on 第二季度的業績，這些業績在我們今天上午早些時候發布的新聞稿中進行了詳細介紹。我們邀請了 Snap-on 首席執行官 Nick Pinchuk；和 Snap-on 首席財務官 Aldo Pagliari。尼克將在今天早上的電話會議上發表他對我們表現的看法。然後奧爾多將對我們的財務業績進行更詳細的審查。在尼克提供一些結束語後，我們將回答您的問題。像往常一樣，我們提供了幻燈片來補充我們的討論。這些幻燈片可以在網絡廣播查看器的“下載”選項卡下以及我們的網站 snapon.com 的“投資者”部分下訪問。這些幻燈片將與今天的電話會議記錄一起存檔在我們的網站上。本次電話會議期間發表的任何與管理層的期望、估計或信念相關的聲明，或者以其他方式討論管理層或公司的前景、計劃或預測的聲明均屬於前瞻性聲明，實際結果可能與此類聲明中的結果存在重大差異。

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. Finally, this presentation includes non-GAAP measures of financial performance, which are not meant to be considered in isolation or as a substitute for their GAAP counterparts. Additional information regarding these measures is included in our earnings release issued today, which can be found on our website. With that said, I'd now like to turn the call over to Nick Pinchuk. Nick?

我們向 SEC 提交的文件中包含了其他信息以及可能導致我們的結果與前瞻性聲明中的結果存在重大差異的因素。最後，本演示文稿包括非 GAAP 財務業績衡量標準，不應單獨考慮這些衡量標準，也不應將其視為 GAAP 對應衡量標準的替代品。有關這些措施的更多信息包含在我們今天發布的收益報告中，您可以在我們的網站上找到該報告。話雖如此，我現在想把電話轉給尼克·平丘克。缺口？

Thanks, Sara. Good morning, everybody. Today, I'll start the call by as usual, by covering the highlights of the second quarter, and I'll give you my perspective on the environment and the trends we're seeing. Along way we'll cover the markets. They're encouraging actually. And I'll take you through the segments and the advancements we've made. Then Aldo will provide a detailed review of the financials. We see the second quarter as a period of significance. Sometimes you see a performance where our breakthrough into new heights. And this is one of those times.

謝謝，薩拉。大家早上好。今天，我將像往常一樣開始電話會議，介紹第二季度的亮點，並向您介紹我對環境和我們所看到的趨勢的看法。一路上我們將覆蓋市場。他們實際上是令人鼓舞的。我將帶您了解各個部分以及我們所取得的進展。然後奧爾多將提供詳細的財務審查。我們認為第二季度是一個重要時期。有時你會看到我們突破新高度的表演。這就是其中之一。

I'm going to tell you why we believe that to be true. In some ways, though, it was similar. This period was similar to many periods we've seen over time as we continue to have significant headwinds. And there's always turbulence variation from market to market. But we believe it's our job to confront and overcome these obstacles, and we did just that in the second quarter by wielding the strength of our advantages, executing on our strategic runways for growth, making the most of our runways for improvement and by relying on the skills and dedication of our people. And once again, it paid off the numbers screen it's sold but here they are.

我將告訴你為什麼我們相信這是真的。但在某些方面，它是相似的。這一時期與我們長期以來所經歷的許多時期相似，因為我們仍然面臨著巨大的阻力。不同市場之間總是存在動盪變化。但我們相信，面對和克服這些障礙是我們的工作，我們在第二季度做到了這一點，利用我們的優勢力量，執行我們的戰略增長跑道，充分利用我們的改進跑道，並依靠我們員工的技能和奉獻精神。再一次，它還清了所售屏幕上的數字，但它們就在這裡。

As reported, second quarter sales of $1,191.3 billion were up 4.8% from 2022, including the impact of $8.3 million of unfavorable foreign currency translation. Organic activity was up 5.6%. The 12 straight quarter of year-over-year expansion beyond pre-pandemic levels. That's a trend that demonstrates that we believe it is a solid consistency during pretty uncertain times. Now let's talk about the earnings. Earnings.

據報導，第二季度銷售額為 11,913 億美元，較 2022 年增長 4.8%，其中包括 830 萬美元不利外幣換算的影響。有機活性增長了 5.6%。連續 12 個季度同比擴張超過大流行前的水平。這一趨勢表明，我們相信在相當不確定的時期，這是一種堅實的一致性。現在我們來談談收益。收益。

Opco operating income for the quarter, including the effects of unfavorable foreign currency was $277 million, up 12.3% and our opco operating margin, the operating margin, it was 23.3%, up 160 basis points from last year, (inaudible). When I said new levels, I mean it. For Financial Services, the OI of $66.9 million represented an increase of $1.6 million, and it all combined to author an overall consolidated operating margin of 26.8% up 130 basis points from last year.

Opco 本季度營業收入（包括不利外彙的影響）為 2.77 億美元，增長 12.3%，我們的 Opco 營業利潤率為 23.3%，比去年增長 160 個基點（聽不清）。當我說新關卡時，我是認真的。對於金融服務業，OI 為 6690 萬美元，增加了 160 萬美元，所有這些綜合起來使整體綜合營業利潤率比去年提高了 130 個基點，達到 26.8%。

And the second quarter EPS, it was $4.89, up $0.62 or 14.5% from last year's $4.27. I think I'll say it again, $4.89, up 14.5%. The productivity and profitability of Snap-on operations shining through as the supply chain viscosity diminished. We believe Snap-on is stronger now than ever before, and the quarter's profitability makes that crystal clear. Well, those are the overall numbers. Now let's speak to the market, auto repair. Again, this quarter, it's favorable. Miles driven are up. Spending on vehicle maintenance, up. Technician count, up. Technician wages, up. Consistently positive year-over-year, consistently positive year-over-year trajectory across all essential categories. Drivers and vehicle repair are fairly understood.

第二季度每股收益為 4.89 美元，比去年的 4.27 美元增長 0.62 美元，即 14.5%。我想我再說一遍，4.89 美元，上漲 14.5%。隨著供應鏈粘度的降低，實耐寶業務的生產力和盈利能力開始顯現。我們相信實耐寶現在比以往任何時候都更強大，本季度的盈利能力清楚地表明了這一點。嗯，這些是總數。現在我們來談談汽車維修市場。同樣，本季度的情況也很有利。行駛里程增加了。車輛維護支出上升。技術人員計數，向上。技術員工資漲了所有基本類別的同比軌跡始終保持積極。司機和車輛維修都相當了解。

Car parks growing, getting older every year, and every year, the tests involved in maintaining and repair the vehicle park get increasingly complex, requiring more hours, great scale, increased wages and more sophisticated tools, hands or power or data-driven tools. There's a significant need for more technicians and greater capabilities. The competition for that talent is growing, and it's being reflected in the rising wages at an everyday level.

停車場每年都在增長、老化，而且每年，維護和修理停車場所涉及的測試變得越來越複雜，需要更多的時間、巨大的規模、增加的工資和更複雜的工具、人力或電力或數據驅動的工具。迫切需要更多的技術人員和更強的能力。對人才的競爭正在加劇，這反映在日常工資的上漲上。

I think you can see this demand when you're trying to schedule a maintenance appointment or just by visually seeing one of the cars and trucks in the repair base are parked outside, crowded around the shops waiting for their turn to get in. And in fact, just this month, I was with a group of franchisees and customers in Bristol, Tennessee, the NHRA Thunder nationals, the drag races, and they energetically expressed their enthusiasm during our conversations. You can feel their optimism of resonating with an appreciation for our products, our solutions and how we make work easier. So we expect that the trajectory of vehicle repair is solid. And we'll continue through the quarters and on into the years ahead, we expect that vehicle repair is the -- we believe that vehicle repair is a great place to operate and the repair information -- our repair information group and our tools group are well positioned to take advantage of that.

我想，當您嘗試安排維修預約時，或者僅僅通過目視看到維修基地中的一輛汽車和卡車停在外面，擁擠在商店周圍等待進入時，您就可以看到這種需求。事實上，就在這個月，我與田納西州布里斯托爾的一群特許經營商和客戶在一起，參加了 NHRA 雷霆國民隊、短程加速賽，他們在我們的談話中積極表達了他們的熱情。您可以感受到他們的樂觀情緒以及對我們的產品、解決方案以及我們如何讓工作變得更輕鬆的讚賞。因此，我們預計車輛維修的發展軌跡是穩固的。我們將在整個季度和未來幾年中繼續下去，我們預計車輛維修是 - 我們相信車輛維修是一個很好的運營場所和維修信息 - 我們的維修信息小組和我們的工具小組已經做好充分利用這一點的準備。

Now on to the critical industries or our commercial industrial over, C&I takes our business out of the garage and solves to have a consequence where the penalty for failure is high in a wide range of sectors, where custom tools are often required to get the job done. This is also the segment where we have a most significant international presence and the attended variations from country to country with many versions of economic and social headwinds. In the U.S., the landscape actually is pretty positive.

現在談到關鍵行業或我們的商業工業，C&I 將我們的業務帶出車庫，並解決了在許多行業中失敗的懲罰很高的後果，這些行業通常需要定制工具來完成工作。這也是我們在國際上擁有最重要影響力的領域，而且各國之間存在差異，存在多種形式的經濟和社會逆風。在美國，情況實際上相當樂觀。

We see progress across a number of sectors. Aerospace is strong. Increased demand in commercial aviation and momentum within space exploration. The military business was another strong quarter of growth now better matching actual needs. Natural resources continue to advance in oil and gas and wind after the uncertainty of the last fall, energy repair is a positive place to be.

我們看到許多領域都取得了進展。航空航天實力雄厚。商業航空需求增加，太空探索勢頭強勁。軍事業務是另一個強勁增長的季度，現在更好地滿足了實際需求。在去年秋天的不確定性之後，自然資源在石油、天然氣和風能方面繼續前進，能源修復是一個積極的地方。

Also begin the period with Industrial Transportation. Supply chain turbulence, I think, has raised the attention on rail and heavy-duty fleets, society now more than ever see the essential need to keep commercial supply moving and it's accruing positively for us.

這一時期也從工業運輸開始。我認為，供應鏈的動盪引起了人們對鐵路和重型車隊的關注，社會現在比以往任何時候都更加看到保持商業供應流動的必要性，並且這對我們來說是積極的。

Now there are tepid spots across the globe. Place is traumatized by the Ukraine or we see that weakness in some of the agent Pacific operations. But one of the clear and large positives in the period is the general rise of critical industries. And our Industrial division is well positioned and it's taking advantage with this capability to customize products to a large number of applications, and it's working. Our critical industry teams are on an upward trajectory utilizing their capability and the enhanced capacity to capture -- the enhanced capacity to capture significant gains.

現在全球各地都有不溫不火的地方。這個地方受到了烏克蘭的創傷，或者我們看到一些代理太平洋業務的弱點。但這一時期明顯而巨大的積極因素之一是關鍵行業的普遍崛起。我們的工業部門處於有利地位，它正在利用這種能力為大量應用定制產品，而且它正在發揮作用。我們的關鍵行業團隊正在利用他們的能力和增強的捕獲能力（捕獲顯著收益的增強能力）走上上升軌道。

Overall, the story of Snap-on outside the garage looks quite promising. And as we move forward, we'll continue to capitalize on an abundant potential. And as part of that, we'll keep engaging Snap-on value creation, customer connection and innovating, developing profitable, new profitable, new products and solutions delivered by the insights and knowledge gains standing next to the customers right in the work place and will drive RCI all over the enterprise, including in the Tools Group. We will keep working to increase our franchisee selling capacity with efficient processes with advanced training programs with social media and digital content and expanded manufacturing capacity to meet the rising demand, all combining to take full advantage of the opportunities and continue the positive trends we've seen into the future. Well, that's a market overview.

總的來說，實耐寶在車庫外的故事看起來很有希望。隨著我們的前進，我們將繼續利用豐富的潛力。作為其中的一部分，我們將繼續致力於實耐寶的價值創造、客戶聯繫和創新，開發可盈利的、新的可盈利的新產品和解決方案，這些產品和解決方案是通過工作場所中客戶的洞察力和知識收益提供的，並將推動整個企業的 RCI，包括工具組。我們將繼續努力通過高效的流程、社交媒體和數字內容的高級培訓計劃以及擴大的製造能力來提高我們的特許經營商銷售能力，以滿足不斷增長的需求，所有這些結合起來，充分利用機遇，繼續我們在未來看到的積極趨勢。嗯，這就是市場概覽。

Now let's move to the segments. For the C&I group, as reported sales rose 1.4%, including $5.6 million of unfavorable foreign currency. Organic volume was up by 3%. A quite strong performance in the Industrial division was attenuated by shortfalls in some of our more challenged areas. Power tools had smaller volumes as customers anticipated the arrival of new products in the third quarter, our European-based hand tool business, SNA Europe, but our Asia Pacific operations demonstrated growth in several markets, but softness in Eastern Europe and currency pressure in Japan, the yen was weak was some offset.

現在讓我們轉向細分市場。據報導，C&I 集團的銷售額增長了 1.4%，其中包括 560 萬美元的不利外匯。有機體積增加了 3%。工業部門相當強勁的表現因一些更具挑戰性的領域的不足而受到削弱。由於客戶預計第三季度新產品的到來，電動工具銷量較小，我們的歐洲手動工具業務 SNA Europe，但我們的亞太業務在多個市場表現出增長，但東歐的疲軟和日本的貨幣壓力，日元疲軟被部分抵消。

But our industrial vision isn't just growing in volume. The margins are strong and rising. Customized product is a wonderful thing. So C&I OI was $68.1 million, a 12.4% increase over last year. And the operating margin was 16%, one of the highest ever for the group, representing a gain of 160 basis points over the second quarter last year. The Industrial division wielding the capacity provided by our new building and Kenosha registered significant sales progress. In April, we discussed the recovery of the military business in the military segment. In this quarter, we continued that momentum, capturing significant long-term contracts, our product line, wide and effective. produced in the U.S. made the difference. So we believe things look promising for the military business and for all our industrial segments.

但我們的工業願景不僅僅是數量的增長。利潤率強勁且不斷上升。定制產品是一件美妙的事情。因此，C&I OI 為 6,810 萬美元，比去年增長 12.4%。營業利潤率為 16%，是該集團有史以來最高的利潤率之一，比去年第二季度增長了 160 個基點。利用我們的新大樓和基諾沙提供的產能的工業部門取得了顯著的銷售進展。 4月份，我們在軍工板塊討論了軍工業務的恢復。在本季度，我們繼續保持這一勢頭，獲得了重要的長期合同，我們的產品線廣泛而有效。美國生產的產品發揮了重要作用。因此，我們相信軍事業務和我們所有工業領域的情況看起來都是充滿希望的。

Beyond the Industrial division in C&I, our specialty tools operation continue to advance, meeting the need for precision with new torque products, covering a vast spectrum of clamping forces for challenging applications. Torque accuracy is rising in importance and Snap-on is ready to capitalize. We are confident and committed to extending in critical industries, and that conviction is anchored by the ongoing expansion of our lineup of innovative products, explicitly designed for particular tasks, offerings like our automated tool control or ETC enabled by proprietary digital imaging technology that scans toolbox, drawers, recording in real time, which tools are required are removed to replace. It's an increasingly crucial feature for aerospace for industrial manufacturing and for commercial transportation operations.

除了 C&I 的工業部門之外，我們的特種工具業務不斷發展，通過新的扭矩產品滿足精度需求，涵蓋了各種具有挑戰性的應用的夾緊力。扭矩精度的重要性日益提高，實耐寶已做好充分利用這一優勢的準備。我們有信心並致力於在關鍵行業進行擴展，這一信念的基礎是我們創新產品系列的不斷擴展，這些產品專門為特定任務而設計，例如我們的自動化工具控製或 ETC 等產品，由專有的數字成像技術支持，可掃描工具箱、抽屜、實時記錄，並刪除需要更換的工具。對於航空航天、工業製造和商業運輸業務來說，這是一個日益重要的功能。

Imagine working out plan or a locomotive engine and unknowingly leaving a tool behind in the workplace. Not good, not good. This is a mistake that could result in a failure in any tight tolerance mechanism, one small item can be a huge problem. Well, ATC has an answer, keeping track of the tools. identifying missing items, tracing, who signed them out and where are they to be used and giving the all clear when everything is returned. So the plans can take off. Snap-on critical industries are on the rise and ATC is part of the reason. And in the quarter, we released our next generation of ATC, a larger touchscreen to improve the shop productivity and upgraded processes with the latest technology for seamless integration with any central IT system. And as you might expect, our customers were enthusiastic, sophisticated products for complex products. It's a winning combination for C&I, and you can see it in the quarter's results.

想像一下，制定計劃或機車發動機，卻不知不覺地將工具落在工作場所。不好，不好。這是一個可能導致任何嚴格容忍機制失敗的錯誤，一個小項目可能會成為一個大問題。好吧，ATC 有一個答案，那就是跟踪工具。識別丟失的物品，追踪，誰簽收它們以及它們在哪裡使用，並在所有物品歸還後告知一切。這樣計劃就可以起飛了。 Snap-on 關鍵行業正在崛起，ATC 是部分原因。在本季度，我們發布了下一代 ATC，這是一個更大的觸摸屏，可以提高車間生產力，並使用最新技術升級流程，以便與任何中央 IT 系統無縫集成。正如您所預料的那樣，我們的客戶對複雜產品充滿熱情，追求精緻的產品。對於 C&I 來說，這是一個成功的組合，您可以在本季度的業績中看到這一點。

Now on to the Tools Group. Organic sales grew 1.1%, which includes 60 basis points of unfavorable foreign currency. Growth in the international markets and a slight improvement in the U.S. network. Based on our franchisees and customer feedback, like I said already, vehicle repair is robust. But in the period, our record demand met capacity constraints before our plant expansion, so we're fully operational, limiting some of the potential possibilities and somewhat attenuating the volumes. But for operating earnings, payrolls in the quarter by $13.3 million or 10.7%, reaching $137.7 million. That's almost double the prepandemic level. The operating margin was 26.3%, a rise of 240 basis points against 50 basis points of negative currency. Let me say that again, Tools Group OI margin was 26.3%. [Boomshakalaka!] This is an eye-popping number.

現在進入工具組。有機銷售額增長 1.1%，其中包括 60 個基點的不利外匯。國際市場增長，美國網絡略有改善。根據我們的加盟商和客戶的反饋，正如我已經說過的，車輛維修很強大。但在此期間，我們創紀錄的需求在工廠擴建之前滿足了產能限制，因此我們已全面投入運營，限制了一些潛在的可能性，並在一定程度上削弱了產量。但就營業收入而言，本季度的工資增長了 1,330 萬美元，即 10.7%，達到 1.377 億美元。這幾乎是大流行前水平的兩倍。營業利潤率為26.3%，比負幣50個基點上升240個基點。我再說一遍，Tools Group OI 利潤率為 26.3%。 [Boomshakalaka！] 這是一個令人瞠目結舌的數字。

So the Tools Group had another positive quarter with substantial profitability. We are confident in the strength of our van network and I believe is borne out of quantitative evidence, franchisee health metrics. We monitor them regularly every quarter. And again, this quarter, they remained strong. So what are you talking about talking to the franchisees at Thunder Valley or looking at the numbers, vehicle repair does appear robust and continues to be so.

因此，工具集團又迎來了一個積極的季度，並實現了可觀的盈利。我們對我們貨車網絡的實力充滿信心，我相信這是通過定量證據和加盟商健康指標得到證實的。我們每季度定期監控它們。本季度，他們再次保持強勁。那麼，你在談論什麼，與雷霆谷的特許經營商交談或查看數字，車輛維修確實看起來很強勁，並且將繼續如此。

Now when you think of the Tools Group profitability, which is a pretty important subject this time, you think about hand tools, that high-margin lineup was -- they were -- that was up in the period. And new products led the way. One example of successful innovation that came from another customer -- customer connection was a number of franchisees observed that diesel technicians struggling to access sensors on Class 8 semi trucks that were struggling to do that. So to change the part without risking damage. The path had to be cleared by removing several other blocking components. Believe me, that's a time-consuming process. And so armed with customer connection insights, those customer connection insights. Our engineers developed an innovative design quickly produced a 3D prototype and confirmed that it solved the problem. And that tool, the SWR 5 90-degree special crowfoot wrench is being made right now at our Elizabeth and Tennessee plant, and it's getting a lot of attention. It really does make truck repair easier. The techs love it and we kind of like the margins.

現在，當你想到工具集團的盈利能力時，這是一個非常重要的主題，你會想到手動工具，高利潤產品線在這一時期有所上升。新產品引領潮流。來自另一位客戶的成功創新的一個例子 - 客戶連接是許多特許經營商觀察到柴油技術人員很難訪問 8 級半卡車上的傳感器，而這些傳感器正在努力做到這一點。因此，可以在不冒損壞風險的情況下更換零件。必須通過移除其他幾個阻塞組件來清理路徑。相信我，這是一個耗時的過程。因此，擁有客戶聯繫洞察力，這些客戶聯繫洞察力。我們的工程師開發了一種創新設計，快速製作了 3D 原型，並確認它解決了問題。該工具 SWR 5 90 度特殊爪形扳手目前正在我們的伊麗莎白和田納西州工廠生產，並且受到了廣泛關注。它確實使卡車維修變得更容易。技術人員喜歡它，我們也喜歡利潤。

Profitable customer connection is one of the drivers behind the Tools Group success. And another example of this quarter is our 2-piece horizontal pushing adapter set. The (inaudible), these names are something, teched at a Subaru dealership where they were taking a lot of time to remove and install control arm bushings from suspension setups on the newer models. Our team assessed the procedure and designed 2 new adapters to integrate with our existing ball joint press, and that enabled the fit for the new -- a good fit for the new Subaru with suspension and say 2 hours in repair time per procedure, that's a big savings in the garage generated by customer connection and innovation. SNL a while ago, SNL's Roseanne Roseannadanna said, it's always something. And it's true. There are always new repair challenges, whether the powertrain is internal combustion, plug-in hybrids or EV platforms. Vehicle architecture is getting tighter, packed with more devices, creating additional accessibility constraints, it's all music to our ears.

有利可圖的客戶聯繫是 Tools Group 成功背後的驅動力之一。本季度的另一個例子是我們的 2 件式水平推動適配器套件。 （聽不清）這些名字是斯巴魯經銷商的技術，他們花了很多時間從較新車型的懸架裝置上拆卸和安裝控制臂襯套。我們的團隊評估了該程序並設計了 2 個新的適配器，以與我們現有的球頭壓機集成，這使得能夠適合新的 - 非常適合帶懸架的新型斯巴魯，並且每個程序的維修時間為 2 小時，這是通過客戶連接和創新節省的車庫的一大筆費用。不久前，SNL 的 Roseanne Roseannadanna 說，這總是很有意義的。這是真的。無論動力系統是內燃機、插電式混合動力還是電動汽車平台，總是存在新的維修挑戰。車輛架構變得越來越緊湊，配備了更多設備，造成了額外的可訪問性限制，這對我們來說都是音樂。

Our franchisees and engineers observe the work, identify complications and simplify the complex and multifaceted tasks to raise efficiency and keep the world moving, and the attendant value is considerable. You can see that in the Tools Group profits. Now one of the highlights of the quarter was the continuing growth of our big ticket sales. A sign of technician confidence in the vehicle repair shop driving some of that trend with the latest tool storage unit, the KMP-1023ZLT7, a 72-inch master series roll cab painted with a unique apparent scheme we call green envy, a break green body paired with black trim. It stands out and makes a statement in any repair shop beyond the eye-popping optics.

我們的加盟商和工程師觀察工作，識別複雜性並簡化複雜且多方面的任務，以提高效率並保持世界運轉，隨之而來的價值是可觀的。您可以在工具組的利潤中看到這一點。現在，本季度的亮點之一是我們的大門票銷售持續增長。這是技術人員對汽車維修店充滿信心的標誌，他們使用最新的工具存儲單元 KMP-1023ZLT7 推動了這一趨勢，這是一款 72 英寸的 Master 系列滾動駕駛室，塗有我們稱為“綠色嫉妒”的獨特明顯方案，突破綠色車身搭配黑色裝飾。它在任何維修店中脫穎而出，超越令人瞠目結舌的光學器件。

The box is also a productivity enhancing powerhouse equipment 14 drawers, including 3 spanning the full width of the unit putting the most important tools of any size right in hand. It also offers our popular power drawer and dedicated space, equipment. You have 5 power outlets and 2 USB ports for charging a full array of core accessories. And for the hard to manage small parts, our 2-inch speed door, it makes for easy organization with green envy color-coordinated dividers, custom slots for components of various sizes. The box is already one of our hit products. It really energized franchisees and was well received by our customers. And as I said, it helped keep the big ticket train moving. Well, that's the Tools Group, strong profitability, built on solid foundations of innovative products and franchisee success mixed with a considerable portion of RCI gain.

該盒子也是一種提高生產力的動力設備，有 14 個抽屜，其中 3 個抽屜橫跨整個單元，可將任何尺寸的最重要工具放在手中。它還提供我們受歡迎的電源抽屜和專用空間、設備。您有 5 個電源插座和 2 個 USB 端口，可為全套核心配件充電。對於難以管理的小零件，我們的 2 英寸快速門可以通過綠色羨慕顏色協調的分隔板和用於各種尺寸組件的定制插槽輕鬆組織。該盒子已經是我們的熱門產品之一。它確實激發了加盟商的活力，並受到了我們客戶的好評。正如我所說，它有助於保持大票火車的運行。嗯，這就是工具集團，強大的盈利能力，建立在創新產品和特許經營商成功的堅實基礎上，再加上相當一部分 RCI 收益。

Now visible as supply that RCI gain is now clearly visible as a supply chain turbulence receives. And then now, let's go on to RS&I. Sales as reported reached $452 million that represented a $35.2 million or 8.4% increase. Gains in the equipment and OEM essential programs paired with -- gains in equipment and OEM paired with our successful rollout of our new handheld diagnostic platform. The OI in the period was $110.4 million, up 14.7% or 15.4% -- up $14.7 million or 15.4%, and the operating margin was 24.4%, a rise of 140 basis points. Nice. Nice.

現在，隨著供應鏈動盪，RCI 的供應增益現在清晰可見。現在，讓我們繼續討論 RS&I。據報告，銷售額達到 4.52 億美元，增加 3,520 萬美元，即 8.4%。設備和 OEM 基本計劃的收益與——設備和 OEM 的收益與我們成功推出新的手持式診斷平台相匹配。該期間的 OI 為 1.104 億美元，增長 14.7% 或 15.4%，增長 1470 萬美元或 15.4%，營業利潤率為 24.4%，增長 140 個基點。好的。好的。

As we said, the vehicle repair environment is strong, offering significant opportunity and the second quarter results for C&I says it's so. And the recent launch of our new SOLUS Plus diagnostic platform was a big key to that success. Great new features including a 2-second boot up, the fastest in the industry and an 8-inch colored touch free with 60% higher resolution, making it much easier for technicians to view in brighter lighting. It supports the latest communication protocols and it offers access to SureTrack. That's our library of vehicle-specific real fixes, repair tips and commonly replace parts that wheels our proprietary database of 2.5 billion repair records and 325 billion vehicle events. SOLUS Plus, the franchisees have been positive, the customers have been excited and the sales have been robust.

正如我們所說，汽車維修環境強勁，提供了重要的機會，C&I 第二季度的業績也表明了這一點。我們最近推出的新 SOLUS Plus 診斷平台是這一成功的關鍵。出色的新功能包括業界最快的 2 秒啟動，以及分辨率提高 60% 的 8 英寸彩色免觸摸屏，使技術人員能夠在更明亮的燈光下更輕鬆地查看。它支持最新的通信協議並提供對 SureTrack 的訪問。這是我們針對特定車輛的實際修復、維修技巧和常見更換零件的庫，這些庫包含我們擁有 25 億條維修記錄和 3250 億條車輛事件的專有數據庫。 SOLUS Plus 的加盟商態度積極，客戶興奮，銷售強勁。

New powertrains are driving the need for extending product lines, including vehicle lifts, enabling independent shops and dealerships to accommodate the new models. So -- and in meeting this opportunity with advantage, part of RS&I success has been our undercar equipment division. It's one of the drivers between our -- behind RS&I's strong growth. Take our challenger lift operation in Louisville. The plant offers thousands of SKUs matched a separate lifting test and the numbers have been growing to meet the specific challenges of EV lifting. And in the quarter, that facility hosted Chief Executive Magazine's Smart Manufacturing Summit, and the event underlines the power of product customization and driving expansion and the extraordinary ability of RCI to render that low-volume production quite profitable. It's that approach that drove RCI's gains. OI up 140 basis points in the quarter and we expect that it will keep doing just that as we go forward throughout the group and all across Snap-on.

新的動力系統正在推動擴展產品線（包括車輛舉昇機）的需求，使獨立商店和經銷商能夠適應新車型。因此，為了充分利用這一機遇，RS&I 的成功部分歸功於我們的車底設備部門。這是 RS&I 強勁增長背後的驅動因素之一。以我們在路易斯維爾運營的挑戰者電梯為例。該工廠提供數千個與單獨的起重測試相匹配的 SKU，並且數量一直在增長，以滿足電動汽車起重的特定挑戰。本季度，該工廠主辦了《CEO》雜誌的智能製造峰會，該活動強調了產品定制和推動擴張的力量，以及 RCI 使小批量生產獲得相當可觀利潤的非凡能力。正是這種方法推動了 RCI 的增長。 OI 在本季度上漲了 140 個基點，我們預計，隨著我們在整個集團和整個 Snap-on 的發展，它將繼續保持這種勢頭。

RS&I, improving position with repair shop owners and managers, growing OEM relationships, expanding the product offerings, welding RCI everywhere, and it all combined to deliver substantial growth and strong profitability. The Snap-on second quarter, continued opportunities in vehicle repair and critical industries, progress along our runways for coherent growth and advancements down our runways for improvement, overall sales increasing organically 5.6%, margin strong in every segment. Opco OI margin, 23.3%, up 160 basis points overcoming unfavorable currency and EPS $4.89, up versus all comparisons. It was another encouraging quarter. Now I'll turn the call over to Aldo. Aldo?

RS&I、提高與維修店所有者和經理的地位、發展 OEM 關係、擴大產品範圍、到處焊接 RCI，所有這些結合在一起帶來了大幅增長和強勁的盈利能力。實耐寶第二季度，汽車維修和關鍵行業的持續機會，我們的持續增長和改進的進步，整體銷售額有機增長 5.6%，每個細分市場的利潤率都強勁。 Opco OI 利潤率為 23.3%，克服了不利的貨幣因素，上漲了 160 個基點，每股收益 4.89 美元，高於所有比較。這是另一個令人鼓舞的季度。現在我將把電話轉給奧爾多。奧爾多？

Thanks, Nick. Our consolidated operating results are summarized on Slide 6. Net sales of $1,191.3 billion in the quarter represented an increase of 4.8% from 2022 levels, reflecting a 5.6% organic sales gain, partially offset by $8.3 million or 80 basis points of unfavorable foreign currency translation. From a geographic perspective, we experienced year-over-year organic sales growth in North and South America as well as Europe, while sales in Asia Pacific were down low single digits, mostly due to weakness in the yen contributing to less activity in Japan. Consolidated gross margin improved 200 basis points at 50.7% from 48.7% last year as gross margins expanded across all of our operating segments. Contributions from increased sales volumes and pricing actions lower material and other costs and benefits from the company's RCI initiatives were partially offset by 30 basis points of unfavorable foreign currency effects.

謝謝，尼克。幻燈片 6 總結了我們的合併經營業績。本季度淨銷售額為 11,913 億美元，較 2022 年水平增長 4.8%，反映出 5.6% 的有機銷售收益，部分被 830 萬美元或 80 個基點的不利外幣換算所抵消。從地域角度來看，我們在北美、南美以及歐洲的有機銷售同比增長，而亞太地區的銷售額則下降了個位數，這主要是由於日元疲軟導致日本的活動減少。隨著我們所有運營部門毛利率的擴大，綜合毛利率從去年的 48.7% 提高了 200 個基點，達到 50.7%。銷量增加和定價行動帶來的材料和其他成本降低以及公司 RCI 舉措帶來的收益被 30 個基點的不利外匯影響部分抵消。

Operating expenses as a percentage of net sales of 27.4% compared to 27% last year. The increase of 40 basis points is primarily due to increased investment in personnel and other costs. Operating earnings before financial services of $277 million in the quarter compared to $246.6 million in 2022 as a percentage of net sales, operating margin before financial services of 23.3%, including 30 basis points of unfavorable foreign currency effects, reflects an expansion of 160 basis points over last year.

運營費用占淨銷售額的比例為 27.4%，而去年為 27%。增加40個基點主要是由於人員和其他成本的投資增加。本季度不計金融服務的營業利潤為 2.77 億美元，而 2022 年為 2.466 億美元，占淨銷售額的百分比，不計金融服務的營業利潤率為 23.3%（包括 30 個基點的不利外匯影響），較去年擴大了 160 個基點。

Financial services revenue of $93.4 million in the second quarter of 2023 compared to $86.4 million last year, while operating earnings of $66.9 million compared to $65.3 million in 2022. Consolidated operating earnings of $343.9 million in the quarter compared to $311.9 million last year. As a percentage of revenues, the operating earnings margin of 26.8% reflects an improvement of 130 basis points from 2022. Our second quarter effective income tax rate of 22.9% compared to 23.8% last year. Net earnings of $264 million or $4.89 per diluted share, including $0.09 share impact from unfavorable foreign currency reflected an increase of $32.5 million or $0.62 per share from 2022 levels and represented a 14.5% year-over-year increase in diluted earnings per share. Now let's turn to our segment results for the quarter.

2023 年第二季度金融服務收入為 9340 萬美元，去年為 8640 萬美元；營業利潤為 6690 萬美元，2022 年為 6530 萬美元。本季度綜合營業利潤為 3.439 億美元，去年為 3.119 億美元。按佔收入的百分比計算，營業利潤率為 26.8%，較 2022 年提高了 130 個基點。第二季度的有效所得稅率為 22.9%，而去年為 23.8%。淨利潤為 2.64 億美元，即每股攤薄收益 4.89 美元，其中包括匯率不利帶來的 0.09 美元的每股收益影響，較 2022 年的水平增加了 3250 萬美元，即每股 0.62 美元，攤薄每股收益同比增長 14.5%。現在讓我們看看本季度的部門業績。

Starting with the C&I Group on Slide 7. Sales of $364.2 million increased from $359.1 million last year, reflecting a $10.7 million or 3% organic sales gain which was partially offset by $5.6 million of unfavorable foreign currency translation. The organic growth primarily reflects a double-digit gain in sales to customers in critical industries, partially offset by declines in power tool volumes. With respect to critical industries, sales to the military were robust as was activity in the aviation and heavy-duty sectors. Gross margin improved 220 basis points to 39.5% in the second quarter from 37.3% in 2022.

從幻燈片 7 上的 C&I 集團開始。銷售額從去年的 3.591 億美元增加到 3.642 億美元，反映出 1,070 萬美元或 3% 的有機銷售收益，但部分被 560 萬美元的不利外幣換算所抵消。有機增長主要反映了關鍵行業客戶銷售額的兩位數增長，部分被電動工具銷量的下降所抵消。就關鍵行業而言，對軍隊的銷售強勁，航空和重型行業的活動也很強勁。第二季度毛利率從 2022 年的 37.3% 提高了 220 個基點至 39.5%。

This is largely due to increased volumes and the higher gross margin critical industry sector, pricing actions, lower material and other costs and benefits from RCI initiatives. These improvements were partially offset by 40 basis points of unfavorable foreign currency effects. Operating expenses as a percentage of sales increased 60 basis points to 23.5% in the quarter, from 22.9% in 2022, mostly due to increased sales and higher expense businesses.

這主要是由於關鍵行業的銷量增加和毛利率提高、定價行為、材料和其他成本降低以及 RCI 舉措帶來的好處。這些改善被 40 個基點的不利外匯影響部分抵消。本季度運營費用佔銷售額的百分比從 2022 年的 22.9% 上升 60 個基點至 23.5%，這主要是由於銷售額增加和業務費用增加所致。

Operating earnings for the C&I segment of $58.1 million compared to $51.7 million last year. The operating margin improved 160 basis points to 16% from 14.4% last year. Turning now to Slide 8.

C&I 部門的營業利潤為 5,810 萬美元，而去年為 5,170 萬美元。營業利潤率從去年的 14.4% 提高了 160 個基點至 16%。現在轉到幻燈片 8。

Sales in the Snap-on Tools Group of $523.1 million compared to $520.6 million a year ago, reflecting a 1.1% organic sales gain partially offset by $3.2 million of unfavorable foreign currency translation. The organic sales growth reflects a mid-single-digit gain in our international operations and slightly higher sales in our U.S. business. Higher sales of hand tools and big ticket items in the quarter were partially offset by lower sales of power tools. Gross margin improved 300 basis points to 49% in the quarter from 46% last year. This increase is primarily due to higher sales volumes and pricing actions, lower material and other costs and benefits from RCI initiatives, partially offset by 50 basis points of unfavorable foreign currency effects. Material costs benefited from reduced expenses for various steel types used in our product offering. Operating expenses as a percentage of sales went up by 60 basis points to 22.7% from 22.1% last year primarily due to increased investment in personnel and other costs.

實耐寶工具集團的銷售額為 5.231 億美元，而去年同期為 5.206 億美元，反映出 1.1% 的有機銷售額增長被 320 萬美元的不利外幣換算部分抵消。有機銷售額的增長反映了我們國際業務中個位數的增長以及美國業務銷售額的小幅增長。本季度手動工具和大宗商品銷量的增長被電動工具銷量的下降部分抵消。本季度毛利率從去年的 46% 提高了 300 個基點至 49%。這一增長主要是由於銷量和定價行動的增加、材料和其他成本的降低以及 RCI 舉措帶來的好處，部分被不利的外匯影響 50 個基點所抵消。材料成本得益於我們產品中使用的各種鋼材類型的費用減少。運營費用佔銷售額的百分比從去年的 22.1% 上升 60 個基點至 22.7%，這主要是由於人員和其他成本投資的增加。

Operating earnings for the Snap-on Tools Group of $137.7 million, including $3.6 million of unfavorable foreign currency effects, compared to $124.4 million last year. The operating margin of 26.3%, including 50 basis points of unfavorable foreign currency effects compared to 23.9% in 2022, reflecting an improvement of 240 basis points.

實耐寶工具集團的營業利潤為 1.377 億美元，其中包括 360 萬美元的不利外匯影響，而去年為 1.244 億美元。營業利潤率為 26.3%，其中考慮到不利的外匯影響，較 2022 年的 23.9% 提高了 50 個基點，提高了 240 個基點。

Turning to the RS&I Group shown on Slide 9. Sales of $452 million compared to $416.8 million in 2022 reflecting an 8.5% organic sales gain, partially offset by $300,000 of unfavorable foreign currency translation. The organic increase is comprised of a double-digit gain in sales of undercar and collision repair equipment, a high single-digit increase in activity with OEM dealerships and a mid-single-digit gain in sales of diagnostic and repair information products to independent shop owners and managers. Gross margin improved to 180 basis points to 45% from 43.2% last year, primarily due to increased sales volumes and pricing actions, lower material and other costs and savings from RCI initiatives. Operating expenses as a percentage of sales went up by 40 basis points to 20.6% from 20.2% last year, primarily due to increased personnel and other costs.

轉向幻燈片 9 中顯示的 RS&I 集團。銷售額為 4.52 億美元，而 2022 年為 4.168 億美元，反映出有機銷售額增長 8.5%，部分被 30 萬美元的不利外幣換算所抵消。有機增長包括車底和碰撞修復設備銷售額的兩位數增長、與 OEM 經銷商的活動高個位數增長以及向獨立店主和經理銷售的診斷和維修信息產品的中個位數增長。毛利率從去年的 43.2% 提高到 180 個基點，達到 45%，這主要是由於銷量和定價行動的增加、材料和其他成本的降低以及 RCI 計劃的節省。運營費用佔銷售額的百分比從去年的 20.2% 上升 40 個基點至 20.6%，這主要是由於人員和其他成本的增加。

Operating earnings for the RS&I group of $110.4 million compared to $95.7 million last year. The operating margin improved 140 basis points to 24.4% from 23% reported last year.

RS&I 集團的營業利潤為 1.104 億美元，而去年為 9570 萬美元。營業利潤率從去年報告的 23% 提高了 140 個基點至 24.4%。

Now turning to Slide 10. Revenue from financial services increased $7 million to $93.4 million from $86.4 million last year, reflecting the growth of the loan portfolio. Financial services operating earnings of $66.9 million, including $200,000 of unfavorable foreign currency effects compared to $65.3 million in 2022. Financial services expenses were up $5.4 million from 2022 levels, including $4.9 million of higher provisions for credit losses. The year-over-year increase in provision reflects both the growth of the portfolio as well as a return to what we believe to be a more normal pre-pandemic rate of provision. Sequentially, the provision for credit losses decreased by about $500,000. For reference, Provisions for finance receivable losses in the current quarter were $13.7 million as compared to $9.1 million in the second quarter last year.

現在轉向幻燈片 10。金融服務收入從去年的 8640 萬美元增加到 9340 萬美元，增加了 700 萬美元，反映了貸款組合的增長。金融服務營業利潤為 6,690 萬美元，包括 20 萬美元的不利外匯影響，而 2022 年為 6,530 萬美元。金融服務支出比 2022 年的水平增加了 540 萬美元，包括增加了 490 萬美元的信貸損失撥備。撥備的同比增長既反映了投資組合的增長，也反映了我們認為大流行前更為正常的撥備率的回歸。隨後，信貸損失準備金減少了約 50 萬美元。作為參考，本季度的財務應收賬款損失準備金為 1,370 萬美元，而去年第二季度的應收賬款損失準備金為 910 萬美元。

In the second quarters of 2019 and 2018, Provisions for losses were $11.9 million and $13.6 million, respectively. In addition, our gross worldwide extended credit of finance receivable portfolio has increased 9.1% year-over-year and we believe the delinquency and portfolio performance trends currently remain stable. In the second quarter of 2023 and 2022, the respective average yield on finance receivables were 17.6% and 17.5%. In the second quarter of 2023 and 2022, the average yield on contract receivables were 8.6% and 8.5%, respectively.

2019年和2018年第二季度，損失準備金分別為1190萬美元和1360萬美元。此外，我們的全球應收賬款融資延期信貸總額同比增長了 9.1%，我們認為拖欠率和投資組合績效趨勢目前保持穩定。 2023年和2022年第二季度，財務應收賬款平均收益率分別為17.6%和17.5%。 2023年和2022年第二季度，合同應收賬款平均收益率分別為8.6%和8.5%。

Total loan originations of $326.3 million in the second quarter represented an increase of $18.7 million or 6.1% from 2022 levels reflecting a 5.7% increase in originations of finance receivables and an 8.3% increase in originations of contract receivables. Gains in extended credit originations in the U.S. were led by franchisee sales of diagnostic products, including our recently launched SOLUS and ZEUS platforms.

第二季度貸款發放總額為 3.263 億美元，較 2022 年水平增加 1,870 萬美元，增幅為 6.1%，反映出金融應收款發放增加 5.7%，合同應收款發放增加 8.3%。美國擴展信貸發放的增長主要得益於診斷產品的特許經營銷售，包括我們最近推出的 SOLUS 和 ZEUS 平台。

Moving to Slide 11. Our quarter end balance sheet includes approximately $2.4 billion of gross financing receivables with $2.1 billion from our U.S. operation. The 60-day plus delinquency rate of 1.3% for U.S. extended credit compared to 1.4% in 2022. On a sequential basis, the rate is down 20 basis points, reflecting the seasonal trend we typically experience in the second quarter. As it relates to extended credit or finance receivables, trailing 12-month net losses of $46.4 million represented 2.45% of outstandings at quarter end, which is down slightly from the 2.46% reported at the end of last quarter.

轉向幻燈片 11。我們的季末資產負債表包括約 24 億美元的融資應收賬款總額，其中 21 億美元來自我們的美國業務。美國延期信貸的 60 天以上拖欠率為 1.3%，而 2022 年為 1.4%。環比下降了 20 個基點，反映了我們通常在第二季度經歷的季節性趨勢。由於與延期信貸或融資應收賬款相關，過去 12 個月的淨虧損為 4,640 萬美元，佔季度末未償清賬款的 2.45%，略低於上季度末報告的 2.46%。

Now turning to Slide 12. Cash provided by operating activities of $270.3 million in the quarter compared to $140.8 million last year. The improvement as compared to the second quarter of 2022 primarily reflects lower year-over-year increases in working capital investment and higher net earnings. Net cash used by investing activities of $94.6 million included net additions to finance receivables of $68.6 million and capital expenditures of $25.8 million. Net cash used by financing activities of $136.5 million included cash dividends of $85.9 million and the repurchase of 359,000 shares of common stock for $94.8 million under our existing share repurchase programs. As of quarter end, we had remaining availability to repurchase up to an additional $336.7 million of common stock under our existing authorizations.

現在轉向幻燈片 12。本季度經營活動提供的現金為 2.703 億美元，而去年為 1.408 億美元。與 2022 年第二季度相比的改善主要反映了營運資本投資同比增幅較低和淨利潤較高。投資活動使用的現金淨額為 9,460 萬美元，其中應收賬款融資淨增額為 6,860 萬美元，資本支出為 2,580 萬美元。融資活動使用的現金淨額為 1.365 億美元，其中包括 8590 萬美元的現金股息以及根據我們現有的股票回購計劃以 9480 萬美元的價格回購 359,000 股普通股。截至季度末，根據現有授權，我們還有餘力回購最多 3.367 億美元的普通股。

Turning to Slide 13. Trade and other accounts receivable increased $25.1 million from 2022 year-end. Day sales outstanding of 61 days was the same as 2022 year-end. Inventories increased $13 million from 2022 year-end. And on a trailing 12-month basis, inventory turns of 2.4 compared to 2.5 at year-end 2022. Our quarter end cash position of $871.3 million compared to $757.2 million at year-end 2022. Our net debt to capital ratio of 6.5% compared to 9% at year-end 2022. In addition to cash and expected cash flow from operations, we have more than $800 million available under our credit facilities. And as of quarter end, there were no amounts outstanding under the credit facility, and there were no commercial paper borrowings outstanding.

轉向幻燈片 13。貿易應收款和其他應收款較 2022 年底增加了 2510 萬美元。未償還日銷售額為 61 天，與 2022 年年底相同。與 2022 年底相比，庫存增加了 1300 萬美元。以過去 12 個月為基礎，庫存周轉率為 2.4，而 2022 年年底為 2.5。我們季末現金頭寸為 8.713 億美元，而 2022 年年底為 7.572 億美元。我們的淨債務與資本比率為 6.5%，而 2022 年年底為 9%。除了現金和預期運營現金流外，我們的信貸額度下還有超過 8 億美元的可用資金。截至季度末，信貸安排下沒有未償還金額，也沒有未償還的商業票據借款。

That concludes my remarks on our second quarter performance. I'll now briefly review a few outlook items for 2023. We anticipate that capital expenditures will approximate $100 million. In addition, we currently anticipate that our full year 2023 effective income tax rate will be in the range of 23% to 24%. I'll now turn the call back to Nick for his closing thoughts. Nick?

我對第二季度業績的評論就到此結束。我現在將簡要回顧 2023 年的一些展望項目。我們預計資本支出約為 1 億美元。此外，我們目前預計 2023 年全年有效所得稅稅率將在 23% 至 24% 範圍內。現在我將把電話轉回給尼克，聽聽他的結束語。缺口？

Thanks, Aldo. Well, that's the quarter. RCI shining through as the supply sky is clear to show the new levels of performance. Vehicle repair continuing its strength. Critical industry is accelerating. RS&I growth, growth in both dealerships and independent shops, advances in helping customize shops to new vehicles, OI margin, 24.4%, up 140 basis points. Tools Group growth attenuated. But strong new products, solving specific problems, creating extraordinary value and an OI of $137.7 million, almost double pre-pandemic levels and OI margins of 26.3%, up 240 basis points, overcoming 50 basis points of unfavorable currency.

謝謝，奧爾多。嗯，這就是季度。隨著供應天空晴朗，RCI 閃閃發光，顯示出新的性能水平。車輛維修繼續保持強勁勢頭。關鍵產業正在加速發展。 RS&I 增長、經銷商和獨立商店增長、幫助商店定制新車方面取得進展，OI 利潤率 24.4%，增長 140 個基點。工具集團增長放緩。但強大的新產品，解決了具體問題，創造了非凡的價值，OI 達到 1.377 億美元，幾乎是大流行前水平的兩倍，OI 利潤率為 26.3%，增長了 240 個基點，克服了 50 個基點的不利貨幣。

C&I extending in the critical industries wielding new capacity, achieving broad growth and an OI margin of 16%, 160 basis points over last year, also overcoming unfavorable currency. And Snap-on credit, profits up, originations rising indicating broad confidence in vehicle repair, and it came together for an attention getting overall performance. Snap-on organic sales rising 5.6%, an OI margin of 23.3%, up 160 basis points and an EPS of $4.89, new levels indeed. It was an encouraging quarter. And we believe that these results representing new heights, highlight the opportunities in our markets. They're essential, demonstrate the power of our approach. It creates extraordinary value solving the critical. And most of all, confirms the strength and reliability of our team, capable and battle-tested, reliability of that team to wield our Snap-on value creation processes, safety, quality, customer connection, innovation and rapid continuous improvement, all to overcome challenges and drive the corporation higher.

工商業在關鍵行業拓展新產能，實現了廣泛增長，OI 利潤率達到 16%，比去年提高 160 個基點，也克服了不利的貨幣因素。實耐寶信貸、利潤上升、起源上升表明對汽車維修的廣泛信心，並且這些因素共同引起了整體業績的關注。 Snap-on 有機銷售額增長 5.6%，OI 利潤率為 23.3%，增長 160 個基點，每股收益達到 4.89 美元，確實達到了新水平。這是一個令人鼓舞的季度。我們相信這些結果代表了新的高度，凸顯了我們市場的機遇。它們很重要，展示了我們方法的力量。它創造了非凡的價值，解決了關鍵問題。最重要的是，這證實了我們團隊的實力和可靠性，他們有能力且經過實戰考驗，該團隊在運用 Snap-on 價值創造流程、安全、質量、客戶聯繫、創新和快速持續改進方面的可靠性，所有這些都是為了克服挑戰並推動公司走得更高。

And we expect that our decisively advantages, those decisive advantages and opportunities and approach. And then people will author a continuing upward trajectory even beyond these levels throughout the remainder of this year, and on into 2024. Now before I turn the call over to the operator, I want to speak directly to our associates and franchisees, the Snap-on team.

我們期望我們的決定性優勢，那些決定性優勢和機會和方法。然後，人們將在今年剩餘時間內創造出持續上升的軌跡，甚至超越這些水平，直到 2024 年。現在，在我將電話轉交給運營商之前，我想直接與我們的員工和特許經營商（即 Snap-on 團隊）交談。

I know many of you are listening. These results do represent new heights. But more than that, there are ringing testimony to your unwavering focus on moving our enterprise forward. Your extraordinary achievements, hard one. Yes, my congratulations. For the capability you demonstrate every day, you have my admiration. And for the unshakable confidence you hold in our path forward, you have my thanks. Operator.

我知道你們很多人都在聽。這些結果確實代表了新的高度。但更重要的是，還有響亮的證據證明您堅定不移地致力於推動我們的企業前進。你的非凡成就，辛苦了。是的，我的祝賀。對於你每天所表現出的能力，我很欽佩你。感謝您對我們前進道路的堅定信心。操作員。

(Operator Instructions) At this time, we will take our first question, which will come from Scott Stember with ROTH MKM.

（操作員說明）此時，我們將提出第一個問題，該問題將由 ROTH MKM 的 Scott Stember 提出。

Nick, you talked about in tools that there was, I guess, it sounded like your ability to meet demand in certain areas was not met because of production. Can you maybe talk about that and maybe tie that into the decline that you talked about in Power Tools?

尼克，你在工具中談到，我想，聽起來你滿足某些領域需求的能力由於生產而沒有得到滿足。您能否談談這一點，並將其與您在《電動工具》中談到的衰退聯繫起來？

Sure. Sure. Look, I think they're semi-related, but here's the thing. I think we started -- I probably said 12 times in this pitch. We think the market is robust. So you're not seeing the market in those numbers. The situation simply here is rooted in hand tools and tool storage primarily, where generally, the mix of products we got exceeded our capacity. We expected a certain mix. We got a different mix. And part of that was the people saying, well, power tools is going to launch in the future new products. And therefore, power tools is not so popular, and it was down in the quarter, anticipating those power tools. And so we bumped up against capacity, particularly around the more customized models, which are more difficult to build and more difficult to turn out. So that's pretty much what it was. I mean fundamentally, if you look at power tools, I mean, tools in the quarter, hand tools, biggest ever, biggest ever...

當然。當然。聽著，我認為它們是半相關的，但事情是這樣的。我想我們開始了——我在這次推介中可能說了 12 次。我們認為市場強勁。所以你在這些數字中看不到市場。這裡的情況主要源於手動工具和工具存儲，通常，我們獲得的產品組合超出了我們的能力。我們預計會有一定的組合。我們得到了不同的組合。其中一部分人說，電動工具將在未來推出新產品。因此，電動工具並不是那麼受歡迎，並且在本季度出現了下降，預計這些電動工具。因此，我們遇到了產能問題，特別是在定制化程度較高的模型方面，這些模型更難構建，也更難生產。事情就是這樣。我的意思是從根本上來說，如果你看看電動工具，我的意思是，本季度的工具，手動工具，有史以來最大的，有史以來最大的......

And you look at tool storage, not only does the tool storage factory have to supply some. And hand tools are some of this, but tools storage, not only does the tool storage factory, you have to supply the tools group. But when you see the acceleration associated with the critical industries that they have boxes as well. And they were expanded. So put a lot of pressure on those factories. So we couldn't able -- we weren't able to follow the market. But -- we had anticipated expansion. Those expansions are starting to be ready now. So the hand tools plant in Milwaukee. We have about 2/3 of the expansion will be ready this month. And in the fourth quarter, the rest of it will be ready. The Elizabethton tool storage -- not tool storage, but the hand tool plant in Elizabethton will have its expansion in the end of the third quarter and the fourth quarter, expanding space and the expansion along our tool storage business is starting to get in place sort of the end of this month.

而且你看看工具儲存，不僅工具儲存廠要供應一些。手動工具是其中一些，但是工具存儲，不僅有工具存儲工廠，還必須供應工具組。但當你看到與關鍵行業相關的加速時，他們也有盒子。並且它們得到了擴展。所以給那些工廠帶來了很大的壓力。所以我們無法——我們無法跟隨市場。但是——我們已經預料到了擴張。這些擴展現已開始準備就緒。所以密爾沃基的手動工具工廠。我們大約 2/3 的擴展將於本月準備就緒。而到了第四季度，剩下的部分就會準備就緒。伊麗莎白頓工具倉庫——不是工具倉庫，而是伊麗莎白頓的手動工具工廠將在第三季度末和第四季度進行擴建，擴大空間，我們工具存儲業務的擴張將於本月底開始到位。

So we're expanding the capacity just that in this quarter, the mix of the products pretty much somewhat reflective of power tools being down and, therefore, filling that in with customized products bumped up against demand.

因此，我們正在擴大本季度的產能，產品組合在很大程度上反映了電動工具的下降，因此，我們用定制產品來滿足需求。

Got it. Okay. And as far as sell into the van sell-through, it sounds as if probably...

知道了。好的。就貨車銷售而言，聽起來好像可能......

Pretty good it was above our numbers like it has been for a couple of periods. We like to say that over time, that's all going to even out. But in this quarter, the sell-through was fell off the van, we say, was better.

非常好，它高於我們的數字，就像幾個時期以來的情況一樣。我們想說，隨著時間的推移，一切都會恢復平衡。但在本季度，銷量有所下降，我們說，情況有所好轉。

Okay. And you would expect that to balance out?

好的。您希望這能夠平衡嗎？

It always balances out. A quarter doesn't mean that much in that situation. But what I'm trying to say is that we still think that demand is pretty strong. You see that when you talk to franchisees and customers themselves. And the whole idea, Scott, is big ticket items are an indication of confidence usually in this market. I mean I suppose it isn't for sure. But generally, in our history, when we've seen big ticket items sell and they did. Originations were up and tool storage had -- I think it's one of its best quarters ever, if you put industrial and hand tools together, that indicates that customers are willing to enter into those longer payback items. And we also saw a nice range of diagnostics numbers this quarter. So those big ticket items really look good, positive sell-through. And so that indicates because the technicians are willing to enter into those longer payback items. And that as they think at least, that the market is good.

它總是平衡的。在這種情況下，四分之一併沒有多大意義。但我想說的是，我們仍然認為需求相當強勁。當您與加盟商和客戶本人交談時，您會發現這一點。斯科特，整個想法是大件商品通常表明人們對這個市場的信心。我的意思是我想這還不確定。但總的來說，在我們的歷史上，當我們看到大件商品出售時，它們確實做到了。起源和工具存儲都增加了——我認為這是有史以​​來最好的季度之一，如果你把工業工具和手動工具放在一起，這表明客戶願意進入那些回報較長的項目。本季度我們還看到了一系列不錯的診斷數據。所以那些大件商品看起來確實不錯，銷售也很積極。這表明技術人員願意參與那些較長的投資回收期項目。至少他們認為，市場是好的。

And just to be clear, sales off the van are stronger right now than into the channel. Got it.

需要明確的是，目前貨車銷售比渠道銷售強勁。知道了。

Our next question will come from Christopher Glynn with Oppenheimer.

我們的下一個問題將由克里斯托弗·格林和奧本海默提出。

Yes. I had a question on the gross margin, which was very strong. You mentioned supply chain clearing. Is that more or less recovered now? Or does supply chain...

是的。我對毛利率有疑問，毛利率非常高。您提到了供應鏈清算。現在或多或少恢復了嗎？還是供應鏈...

Well, every time I have a review, if somebody brings up something that says they got some spot buys still coming through. But in general, like I said, the skies have cleared. And we're going to get a little more benefit, but most of it is out now. Our big problem was, of course, everybody saw commodity prices to go up and freight price to go up. But the big problem for a company like us is we had a spot pricings in a lot of situations, which we're paying 2 or 3x sometimes what the original price was. And so that ends up going in inventory. Just think about it. If you have a trouble getting stuff, you tend to overbuy at sometimes because you want to have it in stock because you want to deliver as the first priority. And so you get yourself in that situation. And so you're seeing that clear. And so what happens in that situation, the advances in new value products and the RCI we've been doing all this time starts to shine through.

好吧，每次我進行評論時，如果有人提出一些東西說他們仍然有一些現貨購買。但總的來說，正如我所說，天空已經晴朗。我們將會獲得更多的好處，但大部分現在都已經消失了。當然，我們的大問題是，每個人都看到商品價格上漲，運費價格上漲。但對於像我們這樣的公司來說，最大的問題是在很多情況下我們都有現貨定價，有時我們支付的價格是原價的 2 或 3 倍。所以最終會進入庫存。考慮一下。如果您在獲取商品時遇到困難，有時您往往會過度購買，因為您希望有庫存，因為您希望將交付作為第一要務。所以你讓自己陷入了這種境地。所以你看得很清楚了。因此，在這種情況下會發生什麼，新價值產品的進步以及我們一直在做的 RCI 開始顯現出來。

Great. And given the expansion at SOT over the past few years and your bandwidth capacity to sell, you've -- I think, grown your actively serviced technicians. I'm wondering, does that reopen the gate to add franchisees and were franchisee -- was U.S. franchisee count? Is that pretty stable, as I understand it to be?

偉大的。鑑於過去幾年 SOT 的擴張以及您的帶寬銷售能力，我認為您已經培養了積極服務的技術人員。我想知道，這是否會重新打開增加特許經營商的大門，並且是特許經營商——美國特許經營商算不算？正如我所理解的那樣，這相當穩定嗎？

It's pretty stable. We're down a few franchisees this quarter, but not many. It's not a factor for government work, Chris. But -- and we're not -- we're probably not going to add people. We believe that our franchisees sell more because we tell them, you're our guys. And if we do well, so you, and so we believe that subdividing their opportunity probably isn't the best alternative. Now we think we have the world covered. We have over 3,400 franchisees around the country. So we think we have most of the places covered. I suppose there's the odd place that we might find that we'd add one or 2. But really, that's not going to be a problem for us. Our way up is to get the guys to be more aggressive and in this instance, to be able to deliver better.

是相當穩定的。本季度我們減少了一些特許經營商，但數量不多。這不是政府工作的一個因素，克里斯。但是——我們不會——我們可能不會增加人員。我們相信我們的加盟商銷量會更高，因為我們告訴他們，你們是我們的人。如果我們做得很好，那麼您和我們都相信，細分他們的機會可能不是最好的選擇。現在我們認為我們已經覆蓋了整個世界。我們在全國擁有超過 3,400 家加盟商。所以我們認為我們已經覆蓋了大部分地方。我想我們可能會發現奇怪的地方，我們會添加一兩個。但實際上，這對我們來說不會成為問題。我們的方法是讓球員們變得更有侵略性，在這種情況下，能夠表現得更好。

We need to -- we're expanding our capacity, so that should relieve some of the problem. But it's a happy problem actually that people saying we're waiting for your tool storage products.

我們需要——我們正在擴大我們的能力，這樣應該可以緩解一些問題。但人們說我們正在等待您的工具存儲產品，這實際上是一個令人高興的問題。

Yes. And is franchisee turnover still stable?

是的。加盟商營業額還穩定嗎？

It's still about the same -- it's about the same. It's about -- I think it's about 10% and you'd say, Chris, what, 5% of that is retirements. You'd say 5% is guys pretty much every year, you'll get that. And so 10% is pretty stable. It had been higher sometimes, but now last multiple quarters has been stable, about that number.

仍然是一樣的——幾乎是一樣的。我認為大約是 10%，你會說，克里斯，其中 5% 是退休金。你可能會說每年都有 5% 是男性，你會明白的。所以 10% 是相當穩定的。有時會更高，但現在過去多個季度一直穩定在這個數字左右。

Our next question will come from David MacGregor with Longbow Research.

我們的下一個問題將來自 Longbow Research 的 David MacGregor。

I guess I wanted to -- maybe a question for Aldo, but obviously, some huge incremental margins in both Snap-on Tools and in C&I. And you referenced the raw material benefit. So I mean we were expecting to report good margins, but these were certainly above what we were anticipating. How much of this price cost carries forward into 3Q and 4Q? Can you just talk about kind of the trajectory?

我想我想——也許是 Aldo 的問題，但顯然，實耐寶工具和 C&I 都有巨大的增量利潤。你提到了原材料的好處。所以我的意思是，我們預計會報告良好的利潤率，但這肯定超出了我們的預期。該價格成本中有多少會結轉到第三季度和第四季度？您能談談軌跡嗎？

I could let out. Okay. Aldo agreed. Okay, you can answer the question, Aldo. Go ahead.

我可以放手了好的。阿爾多同意了。好吧，你可以回答這個問題了，奧爾多。前進。

No. I think, David, I think most of the pricing actions a lot of incurred in the rearview mirror. So what you have now, as Nick has mentioned already, when you attenuate the incremental cost of spot buys that not gone completely, but they're greatly reduced. And steel, different grades of steel at different prices, but particularly cold rolled steel, which is used in our tool storage products has come down, and we're able to hold on to the price that was set before and therefore, the benefit of material cost reductions accrue to the margin. So that's what you're seeing. And yes, I think that with a brand like Snap-on and the power of our approach to the market and the demand that Nick described that's out there, I expect that we'll be able to retain these types of margin performance as we move forward. Nothing's guaranteed, of course.

不，大衛，我認為大多數定價行為都是在後視鏡中發生的。所以你現在所擁有的，正如尼克已經提到的，當你減少現貨購買的增量成本時，雖然並沒有完全消失，但它們已經大大降低了。至於鋼材，不同等級的鋼材有不同的價格，特別是我們工具存儲產品中使用的冷軋鋼材已經下降，我們能夠保持之前設定的價格，因此材料成本降低的好處會增加到利潤中。這就是你所看到的。是的，我認為憑藉像 Snap-on 這樣的品牌以及我們的市場方法的力量以及尼克所描述的市場需求，我預計我們將能夠在前進的過程中保持這些類型的利潤率表現。當然，沒有什麼是可以保證的。

I was watching a show last night and somebody said on the show, he was moving and said, electronic prices only go down, Snap-on prices only go up. We don't drop our -- I mean it's because you've got all the promotions and everything. It's hard to put your finger on it. But generally, I don't see us surrendering that too easily.

昨晚我在看一個節目，節目中有人說，他在移動並說，電子產品價格只會下降，實耐寶價格只會上漲。我們不會放棄——我的意思是，這是因為你已經獲得了所有的促銷活動和一切。很難把你的手指放在上面。但總的來說，我不認為我們會輕易放棄。

Can I just ask how much of that margin benefit that incremental margin was a result of the capacity constraints forcing the mix towards more customized tools because that sounds like that's a fairly..(inaudible)

我可以問一下，增量利潤中有多少利潤是由於容量限制迫使混合使用更定制的工具而產生的，因為這聽起來相當......（聽不清）

I don't know. It could be -- there could be some of that in there. Certainly, that -- the big factor, though, there could be some of that. You're probably right. Just some of that. But the big factor, I think, is the improvements in the face of the idea of no more spot buys, no more of those huge spot buys. So you're seeing that. Actually, we've been making improvements better than we have been showing for some time because of the material cost. And so what you see that is abating. So you're seeing a lot of that. So basically, I don't know where I put it on the foot of more customized product. We did sell a lot of customized products. So that works but we don't necessarily want to back off it. And so when you do have capacity constraints, you do tend to go to that. But on the other hand, when you got capacity constraint, you spend a little more money. You're looking at the SG&A and stuff like that, SG&A is up a little bit. And it takes you a little bit to manage through that. So you got some goes ins and goes out there. But there's a factor. But the big pack is RCI.

我不知道。可能是——裡面可能有一些。當然，那是一個重要因素，不過，可能有一些因素。你也許是對的。只是其中一些。但我認為，最重要的因素是在不再進行現貨購買、不再進行大量現貨購買的想法方面的改進。所以你看到了。事實上，由於材料成本的原因，我們已經做出了比我們一段時間以來所展示的更好的改進。所以你所看到的情況正在減弱。所以你看到了很多這樣的事情。所以基本上，我不知道我把它放在更多定制產品腳上的哪裡。我們確實銷售了很多定制產品。所以這是可行的，但我們不一定想放棄它。因此，當你確實有能力限制時，你確實傾向於這樣做。但另一方面，當你受到容量限制時，你就會花更多的錢。你會看到 SG&A 之類的東西，SG&A 上升了一點。你需要花一些時間來解決這個問題。所以你有一些進去和出去的機會。但有一個因素。但最重要的是 RCI。

So let me just ask you about the organic growth of Snap-on tools because you report 1% organic growth. When you were talking about the Snap-on tool gross margin, you say both volume increases and price gains as drivers. So how do we reconcile the volume increases and price gains that you referenced in the gross margin story with the 1% organic growth and essentially flat in the U.S. Do we just take away from that, that the gross margins were essentially all cost reduction as opposed to revenue growth?

因此，讓我問一下您有關 Snap-on 工具的有機增長的情況，因為您報告了 1% 的有機增長。當您談論實耐寶工具的毛利率時，您說銷量增長和價格上漲都是驅動因素。那麼，我們如何協調您在毛利率故事中提到的銷量增長和價格上漲與 1% 的有機增長以及在美國基本持平的情況。我們是否可以從中得出，毛利率基本上都是成本下降而不是收入增長？

Well, look, I mean, some of this can be plant to plant and production line to the production line, but I think you can say in aggregate, that's probably true. That's probably true. You don't get much wind in your sales from that kind of increase. It's not 0 though, not 0 increase. And so you get some of that. You have some international businesses that came back in this situation. So we had some things happen in that situation. but that's got to be the case right? You didn't get that much volume.

嗯，看，我的意思是，其中一些可以是工廠到工廠、生產線到生產線，但我認為你可以說，總的來說，這可能是真的。這可能是真的。這種增長不會給你的銷售帶來太大的提升。但不是0，也不是0增加。所以你會得到一些。有一些國際企業在這種情況下捲土重來。所以我們在那種情況下發生了一些事情。但情況一定是這樣吧？你沒有得到那麼多的音量。

Yes. Last question for me because we're getting at the top of the hour here. But what's the trend in the total number of active stops across the Snap-on system in the U.S.?

是的。這是我的最後一個問題，因為我們正處於最高峰。但美國 Snap-on 系統中的活躍停車總數趨勢如何？

Active stocks, meaning what?

活躍股，意味著什麼？

Stops. I mean a number of actual customer locations. I know you track that. So I'm just wondering what's the trend there in terms of the total number of stops?

停止。我的意思是一些實際的客戶位置。我知道你追踪到了。所以我只是想知道停靠站總數的趨勢是什麼？

It's -- I don't have that number right here, but my feeling is it's moving upwards. But we don't really count the stops so much as we count the technicians and the technicians are growing. So we're getting more technicians.

我這裡沒有這個數字，但我的感覺是它正在上升。但我們實際上並不計算止損，而是計算技術人員，而且技術人員正在增長。所以我們正在招募更多的技術人員。

Our next question will come from Luke Junk with Baird.

我們的下一個問題將來自盧克·垃圾和貝爾德。

First question, I'm just wondering the capacity constraints you ran into the tools group this quarter, how that might play out in the near term versus mix of business that you'd expect in the third quarter and what would typically be little bit of a seasonal decline sequentially. And if I listen to the cadence in terms of things coming online either end of this month or into the early part of the fourth quarter. It sounds like you think you'll be in a better position in the fourth quarter overall from a supply chain standpoint. Am I hearing that right now?

第一個問題，我只是想知道本季度您遇到的工具組的容量限制，與您預計在第三季度的業務組合相比，這種情況在短期內會如何發揮作用，以及通常會出現一些季節性下降。如果我聽一下本月底或第四季度初上線的節奏。聽起來您認為從供應鏈的角度來看，您在第四季度總體上會處於更好的位置。我現在聽到這個了嗎？

Yes. We think that -- we think the fourth as I've said, probably on every one of these calls in the second quarter, that the third quarter is always kind of squarely because you've got the franchisee conference, then you got vacations, which if franchisees take long vacations that can affect it a little bit or they take short vacations also can affect it. So you have that in place what the Snap-on franchisee conference occurs. Now we might be seeing some little bit of anticipation for that as we did in the power tools. Certainly, power tools is not going to be affected by capacity. I don't think. So that's not going to be. Those new launches shouldn't be affected by capacity. And the capacity is coming online. And so we'll see how efficacious that is. We tend to be pretty good in putting these things in place. So I think you'd be right that the fourth quarter would be -- where we'd be hitting on more cylinders.

是的。我們認為——我們認為第四個，正如我所說的，可能在第二季度的每一個電話中，第三季度總是很直接的，因為你有特許經營商會議，然後你有假期，如果特許經營商休長假，可能會稍微影響它，或者他們休短假也會影響它。因此，您已經了解了 Snap-on 特許經營商會議的情況。現在我們可能會看到一些對此的期待，就像我們在電動工具中所做的那樣。當然，電動工具不會受到容量的影響。我不認為。所以不會的。這些新產品的推出不應受到容量的影響。並且容量即將上線。我們將看看這有多有效。我們往往很擅長將這些事情落實到位。所以我認為你說的對，第四季度我們會達到更多的目標。

And then for my follow-up, just hoping you could comment on the trends that you saw in C&I. You mentioned Europe briefly in Asia, you highlighted the weakness that you saw in Japan hoping you could just expand on Europe more broadly in Asia Pacific, excluding.

接下來，我希望您能評論一下您在 C&I 中看到的趨勢。您在亞洲簡要提到了歐洲，強調了您在日本看到的弱點，希望您可以在亞太地區更廣泛地擴展歐洲（不包括在內）。

Actually, the European business was up in RS&I and interestingly, the U.K. and the Tools Group came off of probably it was flat on its back last year, I think. So it came back some. But the C&I business was kind of a little bit up and down in Europe. And so you -- one of the things that was positive was critical industries. So the critical industry in C&I, boy, volumes and margins, new capacity in place smoke, but the other business is up and down, European hand tool based business in a number of different environments like the Nordics and so on, probably affected by concerns over the war and so on. That is a little bit up and down and not very robust. And I don't know where that's going to tell you. Your guess is as good as mine. I think we're well positioned, but I do think there are macros there that are hard to predict. In Asia Pacific, boy, it's hard to find too many areas that aren't -- maybe India, I would say, is doing well.

事實上，RS&I 的歐洲業務有所增長，有趣的是，我認為英國和工具集團去年可能表現平平。所以它回來了一些。但歐洲的工商業業務有點起起落落。所以你——積極的事情之一就是關鍵行業。因此，工商業中的關鍵行業，銷量和利潤率，新產能到位，但其他業務則上下波動，北歐等許多不同環境中基於歐洲手動工具的業務，可能受到對戰爭等擔憂的影響。這有點上下，而且不是很穩健。我不知道這會告訴你什麼。你的猜測和我的一樣好。我認為我們處於有利位置，但我確實認為其中存在難以預測的宏。在亞太地區，天哪，很難找到太多不是這樣的地區——我想說，也許印度做得很好。

But generally, a lot of areas seem to be having trouble creating a recovery from the COVID for a number of reasons. China, I think it's well documented. Everybody talks about China. We're holding our own in China. But Japan, the currencies make a little different. The yen is pretty weak versus the U.S. dollar and has been for a while, and it's weakened recently versus the RMB. So products into Japan are not so competitive in some cases. So that weakens that. And the market itself is down somewhat. So you're seeing those kinds of things play out. I think Asia will start to work its way out because I don't think it has a long-term problem like the war or like some concerns over hydro or where they're going to get their fuel or energy. So I think that fixes itself more quickly than Europe. While in Europe, I'm not sure where it's going.

但總的來說，由於多種原因，許多地區似乎在從新冠疫情中復蘇方面遇到了困難。中國，我認為這是有充分記錄的。每個人都在談論中國。我們在中國保持著自己的地位。但日本的貨幣略有不同。日元兌美元相當疲軟，並且這種情況已經持續一段時間了，最近兌人民幣也走弱。所以進入日本的產品在某些情況下競爭力不那麼強。所以這削弱了這一點。市場本身也有所下跌。所以你會看到這些事情正在發生。我認為亞洲將開始找到出路，因為我認為它沒有像戰爭這樣的長期問題，也沒有像對水力或從哪裡獲得燃料或能源的擔憂。所以我認為這比歐洲修復得更快。在歐洲時，我不確定它會去哪裡。

Now the auto repair business in Europe in terms of the repair shop owners and managers is pretty good, particularly collision. The industrial business, pretty good, the critical industries business. But the basic up and down the street business and our tools business kind of...

現在歐洲的汽車維修生意對維修店老闆和管理者來講還是不錯的，尤其是碰撞方面。工業業務，相當不錯，關鍵行業業務。但基本的街頭生意和我們的工具業務有點......

And our next question will come from Gary Prestopino with Barrington Research.

我們的下一個問題將來自 Barrington Research 的 Gary Prestopino。

Nick, I know we've talked about this [ad nose], but I'm really -- I'm a little bit confused here about what's going on in the Tools Group. Could you maybe just talk about the product segments where you had these capacity constraints? I think you mentioned tool storage, but what other products were you having or segments where you're having issues with capacity constraints?

尼克，我知道我們已經討論過這個[廣告鼻子]，但我真的 - 我對工具組中發生的事情有點困惑。您能否談談您遇到這些產能限制的產品領域？我想您提到了工具存儲，但是您還有哪些其他產品或遇到容量限制問題的細分市場？

Hand tools. Hand tools is at an all-time high. And some particular products are at over all-time high, like certain versions of the sockets. And so when you got those socket, it sometimes your promotion is ready to go on a particular array of socket as kind of a new package that will address a certain promise and you just don't have the capacity for, say, half of the package. And so that's open to us in this situation. So it's basically those guys bumping up against it and then over the top in tool storage, the industrial business starting to expand its capacity and being able to source more of other products from other people and so on, and break basically, the industrial business have been bound up in a kind of Gordian knot of shipments. I talked about it many times in the quarter. They cut that Gordian knot this quarter and started to ship more and that created more demand on the tool storage and hands tool plant as well.

手動工具。手動工具處於歷史最高水平。一些特定產品的價格創下歷史新高，例如某些版本的插座。因此，當您獲得這些套接字時，有時您的促銷活動已準備好在特定的套接字數組上進行，作為一種新的軟件包，它將滿足特定的承諾，而您只是沒有能力，例如一半的軟件包。因此，在這種情況下，這對我們是開放的。因此，基本上是那些人在工具存儲方面遇到了困難，然後在工具存儲方面超過了頂峰，工業企業開始擴大其產能，並能夠從其他人那裡採購更多的其他產品，等等，基本上，工業企業已經陷入了一種棘手的發貨結中。我在本季度多次談到過這個問題。他們本季度快刀斬亂麻，開始出貨更多，這也對工具存儲和手動工具工廠產生了更多需求。

Okay. And then as we work through the year, you're bringing on capacity and this should alleviate as we work through that?

好的。然後，當我們全年工作時，你們正在增加產能，隨著我們的工作，這種情況應該會緩解？

Yes. I mean we've been saying this for a long time. It's just the particular ordering -- this ordering pattern in this quarter kind of bumped us up against it quicker than we thought. That's simply it.

是的。我的意思是我們已經這麼說了很長時間了。這只是特定的排序——本季度的這種排序模式讓我們遇到的速度比我們想像的要快。就是這樣。

Were the hand tools typical run-of-the-mill hand tools? Or were they more, like you said, customized? I'm just trying to understand how...

這些手動工具是典型的普通手動工具嗎？或者像你說的那樣，它們更像是定制的？我只是想了解如何...

No, they were not so much standard-standard. But there's a lot of lower run. I mean, by that would be shorter production run hand tool in these kinds of mixes. And when you get into them, they eat up a lot of capacity. You see what I mean because you got to stop and start the machines and so on. So it's not a linear thing necessarily. If it was just standard-standard products, we probably could have shipped out of inventory if we needed to. But these other products make it difficult. But we saw it coming, which is this particular one with the idea that people weren't buying as many power tools because they're waiting for the new stuff kind of shifted the mix towards these -- even more towards hand tools and power tools. I mean still storage.

不，它們並不是那麼標準。但還有很多較低的運行。我的意思是，在這些類型的混合中，這將是更短的生產運行手動工具。當你進入它們時，它們會消耗大量容量。你明白我的意思，因為你必須停止和啟動機器等等。所以這不一定是線性的。如果只是標準產品，如果需要的話，我們可能會缺貨。但這些其他產品卻讓事情變得困難。但我們看到了它的到來，這是一個特殊的想法，人們沒有購買那麼多的電動工具，因為他們在等待新的東西將組合轉向這些——甚至更多地轉向手動工具和電動工具。我的意思是仍然存儲。

Okay. I just want to understand what's going on there. And then over time, as things have evolved here, could you maybe -- do you have any numbers or metrics you can circle around? What percentage of what you're doing in the tools or even across the whole company is going into collision repair versus mechanical repair?

好的。我只是想了解那裡發生了什麼。隨著時間的推移，隨著事情的發展，你是否有任何可以參考的數字或指標？與機械維修相比，您在工具甚至整個公司中所做的工作中有多少比例用於碰撞修復？

It's -- well, let's put it this way. I would say collision repair is about -- let me think about this. Equipment, the undercar equipment business is about 1/3 of RS&I, and I would say about maybe 20% to 1/4 of that is collision repair. That kind of ballpark and growing, though because equipment has been growing double digits for some time. It was up double digits again, and its margins were up nicely again.

這是——好吧，讓我們這樣說吧。我想說碰撞修復是關於——讓我想一下這一點。設備方面，車底設備業務大約佔 RS&I 的 1/3，我想說其中大約 20% 到 1/4 是碰撞修復。不過，這種大致的增長趨勢是因為設備一段時間以來一直在以兩位數的速度增長。它再次實現了兩位數的增長，利潤率也再次大幅增長。

This concludes our question-and-answer session. I'd like to turn the conference back over to Sara Verbsky for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給薩拉·韋爾布斯基（Sara Verbsky）做總結髮言。

Thank you all for joining us today. A replay of this call will be available shortly at snapon.com. As always, we appreciate your interest in Snap-on. Good day.

感謝大家今天加入我們。本次電話會議的重播很快就會在 snapon.com 上提供。一如既往，我們感謝您對 Snap-on 的興趣。再會。

The conference has now concluded. Thank you very much for attending today's presentation. You may now disconnect your lines.

會議現已結束。非常感謝您參加今天的演講。您現在可以斷開線路。