Nicholas T. Pinchuk
Chairman and Chief Executive Officer at Snap-on
Thanks, Sara. As usual, I'll -- good morning, everybody. As usual, I'll start the call by covering the highlights of the first quarter and I'll give you my perspective on what it all means. And then Aldo will provide a detailed review of the financials. Along the way, we'll cover the markets, the robust gangbusters. We'll also give you a view of our momentum. It's been unbroken and vibrant. Once again, the story of our quarter is continued resilience. Our ability to navigate the complex while knowing that with the flip of a calendar will bring new challenges. You could pick up any significant publication or listen or watch any business show and you'll encounter a barrage of concerns, measures of adversity and contraction. But we know we can resist the difficulties. And so, we have for the past three months and for quarter-after-quarter.
You see we're armed with significant advantages. Our market displaying resilience, worn out of criticalities. Our brand standing above, delivering quality and reinforcing personal pride. Our products, they clearly move the world forward by making the critical easier. And finally, our people. Our team. Experienced, capable, and competent. We are encouraged by this quarter. And I'll tell you why. Our reported sales in the period were $1.183 billion, up versus last year by $85.2 million or 7.8% including $24 million or 240 basis points of unfavorable foreign exchange. Organic sales, they were up 10.2%, increases in every group, our 11th consecutive quarter of year-over-year operating expansion. Our opco, operating income, for the quarter was $259.8 million, including $7.6 million of unfavorable foreign currency, increasing by 16.5%. And the operating margins, the operating margin, it was 22%, rising 170 basis points over the last year. For financial services, operating income of $66.3 million compared to last year's $70.4 million. And that combined with opco resulted in a consolidated operating margin of 25.6% and an 80 basis-point improvement. And the first quarter's EPS, $4.60, up $0.60 or 15% from last year's $4. So, we believe our confidence and our ongoing optimism is clearly justified by the numbers.
Now let's look closer at our markets. The automotive repair environment remains hot. Demand across all disciplines. We continue investing in new products and accommodating repair challenges of newer models, matching the increased complexity. As platforms change, the modification requires new tools to accomplish this task and we're keeping pace, whether it's an internal combustion engine or an electric vehicles, the tech's need and assist and we're ready to bring it. The updates create a range of challenges, new challenges, from accessibility issues associated with compliance spaces, required new designs of varying geometries. The tighter engineering talent is fueling the need for precision torque instruments to the increasing number of passengers and listing our power tools to remove and install parts efficiently to the rise of drive by wire. More electronics, the great -- the more of the electronics, the greater the need for handheld diagnostics and special software that can communicate with and manage the neural network of computers and sensors. We're seeing strength in OEM dealerships. As new models break down to the market, new arrays of a essential tools, equipment, and diagnostics are needed to service different and unique characteristics of each vehicle. For independent repair shops, business is booming. You would be taking your vehicle in for service. Recently, you've witnessed this firsthand. The bays are full and the parking lots are chock-a-block. And when I speak with our franchisees, they are enthusiastic, saying demand is robust. It's written all over the numbers. Garages are scheduled further out for shops of all types. Owners see the growth. They know they need technicians. And as you might expect, the rising tech tech count is substantial and the wages are moving up and then of course, this is all music to our ears.
We believe that with the new vehicle models, the rise of automation, the growing need for precision, and the increasing vehicle complexity, we may be entering the golden age of vehicle repair and our numbers say, it may be sought. So, vehicle repair is a great place to operate for our Tools Group and for our Repair Systems & Information Group, RS&I. And we believe it's only getting better.
Now let's talk about the critical industries where Commercial and Industrial, or C&I, takes Snap-on out of the garage, solving tasks of consequence, representing our most significant international presence. It's an area where we're, I suppose, most subject to global headwinds. But the news is still reasonably encouraging. The critical industries kept rising across sectors. Aviation, education, heavy-duty fleets, general industry and natural resources, all up. And the military, once down, is now rebounding with high demand. And for geographies, North America was strong, Europe was improved, even in the face of the ongoing war in Ukraine and the revenue disruption, the Brexit, and Asia-Pacific remained mixed, variation across the landscape. But overall, the critical industry markets of C&I showed significant and broad positive. Every sector. The first quarter was marked by substantial strides in that arena and we see more opportunity on the horizon.
We believe there's abundant and ongoing potential all along our runways for growth, enhancing demand network, expanding to repair shop owners and managers, extending the critical industries, and building in emerging markets, leveraging our expansive product line, we're holding our strengthening brand and deploying the increasing understanding of the tech, connecting to the customer, standing face-to-face in the workplace where the tasks are performed, observing the work, turning that insight into innovative new products, and some in the future for professionals. And we amplify that endeavor by applying a generous helping a rapid continuous improvement, or RCI, as we call it, driving our productivity and our margin upwards. So, that's our view of the markets.
Now let's turn to the groups. In the C&I group, sales of $363.8 million, including $12.5 million of unfavorable foreign currency, increased 7% to last year. Organic sales were up 11.1% with double-digit gains in critical industries and specialty [Technical Issues] that precision leading the way. C&I's operating income of $55.8 million, including $2 million of unfavorable foreign currency, represents an increase of 22.1% over last year and the operating margin was 15.3%, up 190 basis points from the 2022 level. Promising numbers. C&I demonstrated considerable growth despite the ongoing uncertainty across geographies. One of the factors that's been attenuating C&I in the recent past was the impact of supply turbulence. The customized -- you heard me say it on the call, the customized kits with many different products are vulnerable to availability disruption and one of the drivers behind the C&I rise were the improvements along the supply chain. During the period, we started to clean the log jams and reduce the impacts. The first quarter is evidence of that progress. For some time, we've said that the demand in critical industries have been strong. It continued in the first quarter. And that positive is rooted in innovative products designed specifically for making a difference in critical path. One example is our new ATECH 1/4-inch Drive Flex-Head TechAngle Micro Torque Wrench, through a mouthful, but it's a great product. It's aimed directly at the aircraft repair where the necessity for torque position is rising. The need for power is increasing and repair in tight spaces is becoming more common. Our new unit works on all three fronts.
The new wrench is almost 1-foot long, but less than 1 inch in diameter, configured to facilitate access deep inside engine compartments. It's also equipped with the 50-degree Flex-Head design allowing it to avoid obstacles and it uses our durable 72 tooth gear mechanism, enabling the tool to operate with small rotations when the barriers restrict motion making it tough to wrench. The new ATECH has the power, significant power, reaching 300-inch pounds and it's expanding the range by 20% and increasing the number of applications that the tool can cover, consolidating tests from multiple devices to one convening unit, and eliminating change over time providing -- that's providing a nice productivity gain. The unit has four loop modes: LCD, LED, vibratory, and audible. Those four prevent over-torquing even when the the visibility is low and the space is constrained. And when combined with the unit's accuracy of plus or minus 2%, the feature serve to keep the fastening right on spec. The ATECH, accessibility, power, and accuracy protects throughout the aviation sector. It's another hit product that helped drive C&I upwards in this quarter. Well, that's C&I, on the rise, higher sales, stronger profits, powerful products, and more to come.
Now on to the Tools Group. Sales of $537 million, up $24.9 million, including $7.1 million of unfavorable foreign currency, registering a 6.3% organic gain, with high-single-digit increases in the U.S. and a low-single-digit rise in international network. And the operating margin, the operating margin was 24.5%, up 180 basis points against the 80 basis points of unfavorable currency. Boomshakalaka! This was a great number for us. We're really optimistic and encouraged by this. The vehicle repair markets are strong and resilient and the traits an ongoing pass of abundant opportunity. And once again, the tools numbers back it up. But beyond the quantitative evidence, I was just with some of our van drivers last week, and their view was indefinitely positive. That's the only word I can use. Without a equivocation or without question, they say shops are busy. All our product lines are in high demand. And their technician customers are brimming with confidence. It seems like the people of vehicle repair from top to bottom have great expectations for the way forward. And that positivity is evident in the continuing enthusiasm for big tickets, longer payback items, diagnostics, and tool storage boxes. They continue to be major contributors to our results. You can see it in the success of the top-of-the-line ZEUS+ Handheld Diagnostics unit. You can find it in the reception of our latest addition to the EPIQ tool storage lineup. The 68-inch EPIQ Limited Edition box toolbox, we call it the Neon Stinger. It's generated considerable excitement with its eye-catching look, a gloss black body, with the newest color in tool storage trim, [Technical Issues] I mean, this baby pops. Even in the less than bright lighting in say the corner of a shop, of a tool storage -- of a repair shop, it stands out at any place, giving the tech the chance to make a statement. And it's not just the glow. It also offers a range of powerful functionality. The SpeeDrawer providing customizable organizations. A Power Drawer with securable charging space. An LED power top, spanning the entire length of the box, fully illuminating the drawers and the tools, making them shine like the jewels they are.
The Stinger -- it also offers 15 power outlets and six USB ports, all to ensure the tech's cordless tools, lights, and accessories will always charged and ready to go. I will tell you. Demand was strong and Stinger was a Snap-on million-dollar hit product in the blink of an eye. So, the Tools Group, robust demand in all product segments. And the momentum train just kept running throughout the quarter.
Now let's speak of RS&I. Sales reached $446.6 million, up $48.4 million, or 12.2% including $6 million in unfavorable foreign currency. Organic activity advanced 13.9% with double-digit increases in undercar equipment and OEM businesses driving the gain. Two big contributors. RS&I operating earnings were up $104.6 million, rising 14.2% over last year, and the operating margin was 23.4%, up 40 basis points. Again, once again, this quarter, software products and subscriptions were a significant plus. Along those lines our Mitchell 1 division responsible for providing repair information software to independent shops continued to succeed, pursuing customer connection innovation by bringing great new improvements to shop efficiency. At this year, one example is -- at this year's meeting of the Heavy-Duty Technology & Maintenance Council in Orlando, Mitchell 1 introduced our powerful wiring navigation features, specifically for trucks. It was made clear to large truck professionals that our new software would make it much easier and quicker for technicians to navigate the challenges of electrical issues on the bays, ever more complex vehicles whether powered by internal combustion or battery cells. The feature makes real difference. It's a significant aid to truck repair world, enabling quick transition from one wiring diagram from another, following the wire without interruption between views. This is a significant time saver for the techs across the industry. And the shops are noticing.
Mitchell 1 just released another great product. It's automated work package function for its collision repair software. The new system gathers into one screen all the relevant information needed for collision jobs, overall procedures, illustrations and diagrams, all retrieved with the click of a button, with one click of the button. One of the difficulties in collision repairs that the multifaceted nature of the task, unique part details, repair procedure, system diagrams, but that information is usually found in separate places and in varying categories within the vehicles documentation. Our new system combines the data into a single work package that guides the technician progressively through the effective repair. It sounds really simple but in fact, the consolidated comprehensive information eliminates the 20 to 90 minutes that's ordinarily needed to prepare an effective guide for a collision repair task. We believe the new software will be a big contributor to Mitchell 1's growth. It's a clear savings in an area that's rising in modern vehicle repair.
With the increase of vehicle automation and the associated growth in sensor networks, collision repairs are increasingly more important. And our new feature is right on target to ease the way. We keep expanding in RS&I. In RS&I, we keep expanding RS&I's position with repair shop owners and managers, offering more and more solutions for the day-to-day challenges, wielding customer connection and innovation, two essential components of Snap-on's value creation, processes to drive winning new software and hardware. We're confident. It's a successful formula. And RS&I results reinforce that view.
So, those are the highlights of our quarter. Continued momentum. Our 11th straight period of year-over-year operating growth. C&I is showing strength, gaining against the slide turbulence of the day. RS&I remaining robust, rising with software and hardware. The Tools Group, a healthy enhanced van network aiming for more. Organic sales in the quarter up 10.2%. Opco, our operating margin, 22%. And EPS $4.60, up 15% over last year, a significant increase. It all adds up. It all serves to provide clear evidence and powerful testimony that Snap-on has emerged from the great withering in the COVID, stronger than when it entered, and the enterprise is continuing the upward trend with capability and conviction. It was an encouraging quarter.
Now I'll turn the call over to Aldo.
