Nick Pinchuk
Chief Executive Officer at Snap-on
Thanks, Sara. Good morning everybody. Well, it's been some years, quite a quarter. China knee jerking from zero COVID strict lockdowns to living with COVID in unprecedented virus explosion. Diminished, but still continuing spikes on the supply chain. The ongoing Ukraine war, the emergence of -- the reemergence of Brexit and now the rising shadow of a recession echoing in almost daily public pronouncements and through it all, Snap-on delivered another in a long-line of encouraging performances.
Starting with the highlights of the quarter in the year, I'll give you my perspective on the results, the market environment and our progress. And after that, Aldo will move into -- as usual, Aldo will move into a more detailed review of the financials.
The fourth-quarter was encouraging. We believe it emphatically demonstrated continuing resilience of our markets and the capability of our operations to achieve in the face of difficulties, wielding the power of our products, our brand, our people and our strategic position. It all combines to service clear evidence of what we already know, Snap-on's unique and extraordinary operation.
The results for the fourth-quarter serve as more testimony to that fact. And they are an unmistakable demonstration of our continuing momentum. Of course, we did witness differences from Group to Group and within the operations, but we believe the overall results are compelling. Fourth-quarter sales of $1155.9 million as reported, up 4.3% from 2021, included a substantial impact from unfavorable foreign currency of $37.7 million, a 370 basis point headwind and an organic sales increase of 8% over last year and that represented a 22.7% rise over 2019. This now represents the corporation's 10th consecutive quarter above pre pandemic levels. It's a trend of I think some significance in uncertain times like these.
From an earnings perspective, our Opco operating income for the quarter, including the impact from unfavorable foreign currency was $248 million, up 6.8% compared to 2021 and 44.7% above the 2019 pre-pandemic level. The OI margin for the quarter, it was 21.5%, improving by 50 basis-points over last year and 360 basis-points over 2019. You know, it's the same resiliency that's been demonstrated over the years as we paid dividends every quarter since 1939, without a single interruption or reduction. In fact in November, our dividend was raised by 14.1%, marking the 13th straight year of increases. It's more testimony of Snap-on's consistent performance through varying environments. This is just another one of them.
For financial services, operating income of $63.9 million, was down from -- $63.9 million was down from the $67.2 million in 2021. That decrease reflected the forecast to return to more historical provision levels. But, all while keeping delinquencies flat last year. And our overall quarterly EPS reached $4.42, $0.32 or 7.8% above 2021 and up 43.5% compared with 2019. So those are the numbers. Now to the markets. We believe the automotive repair remains very favorable. It makes sense, you know, the average age of vehicles continue to increase. The complexity repairs is rising steeply as new platforms enter the vehicle part and until they have starting in dealerships and we have seen a resurgence in dealership projects despite still recovering supply chain. Changes in internal combustion, the rise of electric vehicles, and the expansion of vehicle autonomy have made dealerships eager for new equipment to support complex repair tasks of the evolving vehicle park. And we see it.
Projects and powertrains aside, dealerships continue to see healthy demand in repair and maintenance and warranty, driving the need for shop expansion and more technicians. You can see them in the macros, repair spending, technician numbers, technician wages all up. Our dealership segment is expanding. And for independent repair shops, confidence remains sky high across the board. Shop owners and managers confirm that demand for repairs for technicians of a complex deals are all rising and our sales growth in that sector mirrors that enthusiasm. We believe we're moving into what can be called a golden age of vehicle repair and our Tools Group and RS&I Group are uniquely positioned with the product, the brand, and the people to take full advantage even in the midst of turbulence. You can see it.
Now for the critical industries, where our Commercial Industrial Group, C&I, operates. We continue to see progress, but the Group spans a wide jurisdictions and as such, various headwinds across the geographies in the industries have attenuated some of those gains. For geographies, Europe with the war and the reemergence of Brexit and the China impacted by the COVID chaos were a stark contrast to relatively strong North American markets, a lot of variation. And the range and variability among sectors also continue to be a challenge, natural resources, heavy-duty fleets, general industry and international aviation were robust, but the military area remained challenged. Overall, however oil demand for most of the critical industries has been strong and we believe that's a great signal for C&I's future.
So C&I does have challenges across geographies and the segments. But we have made advancements and we see opportunities for tomorrow. Going forward, we believe we will keep moving down our runways for growth, wide runways for growth, and as we proceed. We're also fortified as all of you have heard before by our Snap-on Value Creation processes, safety, quality, customer connection, innovation and rapid continuous Improvement or RCI with core processes that drive our ongoing progress. Especially customer connection and innovation, growing our product-line.
You see our franchisees and our direct sales force possess a strategic advantage, standing face-to-face with professional techs, understanding their individual challenges, showcasing the solutions created by our powerful products and demonstrating their use.
Our resilient markets do represent a significant opportunity and we are there to take advantage up close and personal like no one else, right where the jobs are done. And it's working. 2022 was a year of substantial headwinds, but our team prevailed with the year achieving new height, sales of $4492.8 million, up 5.7%, reflecting organic gain of 8.7% compared to 2021 and 20.2% organic increase versus 2019. The Opco OI margin for the year was 20.9%, up 90 basis points from '21 and exceeding the pre-pandemic margins by 170 basis points. As reported, earnings per share for the year were $16.82, up 12.7% from '21 and represented a rise of 35.5% from 2019. It's all evidence of the size of an ongoing momentum that mark the year and the quarter.
Now, the operating group. So, let's start with C&I. Fourth-quarter sales were $343.2 million for the Group, were down $15.5 million versus last year, including $21.2 million, an unfavorable currency and a 1.7% organic gain. Our specialty tools division was a clear positive with double-digit gains. Precision is becoming essential everyday and our torque products are putting us right in the middle of that rise. Our critical industries also showed strength, especially in North-America, propelled by growth in natural resources, general industry, heavy-duty, partially attenuated by lower military activity.
Outside North America, it was a different story. SNA Europe was down and China was diminished. OI for C&I was $47.9 million, down $2.2 million primarily from the $2.3 million of unfavorable foreign currency.
The Group's operating margin was 14%, it was flat to last year, but still represented an advance of 120 basis points over the pre pandemic level of 2019 and that was against 50 basis points of negative currency and acquisition dilution. The specialty torque business within C&I really is making significant strides. Torque is hot and Snap-on has a widening array of new offerings to prominently participate in that trend. Products like our new series of digital torque checkers -- it's from our Norbar engineering team, remember, we acquired Norbar a few years ago, our Norbar engineering team in England -- more compact and easier to use. It helps technicians validates the actually axe and torque instruments close to the workplace, saving a lot of time.
Our news checkers accommodate torque measurement from 5 inch-pounds to 1500 foot-pounds and ranges from a quarter inch to one inch, covering jobs from precision fasteners in a jet cockpit to heavy-duty bolts on a giant oil rig, a wide range of applications. And it's compact steel housing easily mounts in a variety of convenient locations at the point of issuing or in the pathway of the workflow, like tool cribs, aviation hangers, and manufacturing cells, making torque checking an easy exercise. With an accuracy of plus or minus 1%, our new checker increases process quality without work interruption, raises consistency in assembly activity and with a streamlined documentation feature, greatly improves the management of fastening in any application. The initial launch was well-received by any operation relies on precision torque and there are a lot of them. And as you can imagine, the new checker is right on track to be a Snap-on hit product with sales of $1 million in the first year. So it looks like it's a pretty strong product for us. C&I, mixed progress, challenged with headwinds, but it did have significant areas of improvement, paving the way for future growth.
Now on to the Tools Group. Quarterly sales of $542.7 million, up $37.9 million, including 9.5% in unfavorable currency, and a 9.6% organic increase, gains in the U.S. operation and continued expansion in the international networks. And it was all led by big-ticket items, tool storage and diagnostics, both with baffle double-digit gains. Operating earnings for the Tools Group were $116.1 million in the quarter, so $5.6 million above 2021 and that included $4.5 million in unfavorable currency.
The operating margin was 21.4%, 50 basis-points below last year, but that was impacted by currency and by-product mix, but it was still -- you know, a result of considerable strength. Tools Group again represents the ongoing power and market leadership of our van network. It's right and across the financials and that positivity is clearly and boldly echoed in the voices of our franchisees. I can tell you. I was just at one of our annual kickoff, unmistakable that they are pumped, enthusiastic and confident. They know they're growing.
And they firmly believe there is more to be ahead and our franchisees health metrics confirm all of that to be true. The quantitative trajectory delays in that data supports every bit of the positivity of the positive attitude. And our franchisees have expressed their excitement in more formal ways. During the quarter, we were recognized by the Franchise Business Review, which surveys franchisee satisfaction and its latest ranking, that publication once again -- latest annual ranking, that publication once again listed Snap-on as a top 50 franchise, marking the 16th consecutive year we received that award. And internationally, Snap-on was ranked number one, number one in Elite franchise magazine's top U.K. franchises for 2023, finishing not only above the U.K only franchise systems, but also coming in ahead of the very popular global brand, number of very popular global brands. Now that type of recognition reflects, I think, the fundamental strength of our van business. It would not have been achieved without a continuous stream of innovative new products, as part of that.
Snap-on continues to lead the industry with great tool storage innovations designed to improve productivity and allow techs to personalize their workspace. We're the first to market with the LED power top, rightly lighting the gleaming Snap-on tools like special jewels as each jewels access. It's quite a sight. It enables the techs to show the pride in their work and building on that feature, in December, we started shipping the first of our new tool storage units. It's a 68-inch special edition EPIQ roll cab, which allows the technician to adjust the draw lighting with an infinite array of colors selection. It is an eye catcher, coated in storm gray paint paired with red trim. And it also features -- besides it's apparent. It also features for the first time, a specially lit Snap-on logo name plate. It's innovative, striking and as for all EPIQ boxes, all of them, it's streams functionality. The power top and power door provides 10 electrical outlets and four USB ports throughout the roll cab. That ensures that all the cordless tools, the lights, the accessories are charged, and at the ready.
It also features a unique speed drawer for smart customizable tool organization. It's a very popular product and productive feature in the shops, convenience, productivity and distinction. The Iris received an overwhelming reception, helping to drive the landmark tool storage we had just in the fourth quarter. Landmark tool storage quarter we had just recently. It shows that pride really is a powerful salesman. We show that every day. Well, that's our Tools Group.
Booming in the US, progressing internationally, continuing with the stream of new products, building the brand, enhancing the van channel and moving forward with momentum.
Now for RS&I. In the fourth quarter, RS&I group results confirmed what we've been saying all along, Snap-on is well-positioned for the ongoing rise in vehicle repair. RS&I sales in a quarter of $437.9 million increased 11.6%, including $9.5 million unfavorable currency, and a 14.3% organic gain. 14.3% boomshakalaka. That rise was authored by it. It was a great, great performance and that raise was authored by double digit increase in OEM dealerships as manufacturers continue to release new models, invest in new equipment and implement essential tool programs. But our business in the independent garage has also expanded nicely with double digit growth in our under car equipment, in our diagnostics and repair information products, twin pillars of strength. Shop owners need upgrades to follow the changing car park and they now have confidence regarding their futures to act on that imperative and Snap-on is ready to help.
RS&I operating earnings for the quarter were $110.6 million, up 13.8% and again, and the operating margin, it was 25.3%, rising 50 basis-points over 2021, exhibiting our team's ability to navigate the turbulence, wielding Snap-on value Creation, connecting with customers, launching innovation, executing RCI and doing what they are expected to do, keep raising profitability. One example is our diagnostic business. Double-digit growth led by new products. Last quarter, we mentioned the launch of our game-changing handheld intelligent diagnostic unit the Zeus plus. Well, it's selling at a record pace. It's hard in hardware and in software subscriptions. It's a great unit that again raises the bar in advance repair, providing technicians with a powerful help in troubleshooting and diagnosing the most complex of vehicle repair.
Zeus plus makes so special challenges, take up so much Shop time, appear quick and easy and the techs are noticing. RS&I. the repair shops are confident, seeing a great future and RS&I has the products to pave their way. Well, that's our fourth quarter. Opco organic sales rising 8%, 10 quarters of consecutive growth from pre-pandemic levels Tools Group demonstrating strength, organic sales up 9.6% over last year, rising 33.2% from pre-pandemic levels. RS&I products to meet the needs of of the vehicles of today and of tomorrow
Activity up 14.3% organically. Gains in both OEM dealerships and independent shops. C&I showing potential for growth despite international headwinds. Strong momentum in the critical industries with much more to go. And it all drove a 21.5% operating margin for the overall enterprise, rising 50 basis-points from last year and an EPS of $4.42, up over every comparison. It was another encouraging quarter. Now, I'll turn the call over to Aldo, Aldo.
