Snap-on Incorporated (NYSE:SNA) Q2 2023 Earnings Call Transcript

Nicholas Pinchuk: No, they were not so much standard-standard. But there’s a lot of lower run. I mean, by that I mean 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. It was just this particular one with the policy, 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 tool storage.

Gary Prestopino: 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?

Nicholas Pinchuk: 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 one-third of RS&I, and I would say about maybe 20% to quarter 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.

Gary Prestopino: Okay, thank you.

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

Sara Verbsky: 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.

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