Nicholas T. Pinchuk
Chairman and Chief Executive Officer at Snap-on
Thanks Sara. Good morning everybody. As usual, I'll start the call by covering the highlights of our first quarter and along the way, I'll give you my perspective on our results, they are encouraging. In our market, so looking positive and our progress, we believe we're stronger than ever. We'll also speak about what it all means. We believe it means that we're positioned for more, much more. Then Aldo will move into a more detailed review of the financials. These are interesting times, filled with multiple axes of turbulence, but this isn't our first rodeo. We know it's always something. And it's our job to confront and to overcome with the resilience of our markets, the strength of our strategic and tactical advantages and the insight and energy of our consistent and capable team, and we've done just that. Here are the numbers that support that view. Our reported sales in the quarter of $1.0978 billion were up 7.1%, including $8.5 million in acquisition-related activity of $15.7 million of unfavorable foreign exchange. Organic sales growth was 8% with gains in every group.
And compared to the pre-pandemic levels in 2019, our clear upward drive shines right through versus 2019 sales in this past quarter rose 19.1% as reported and 16.9% organically. In fact, it's our seventh straight quarter being above the pre-virus levels. We believe we're continuing an ongoing trend of accelerating expansion, momentum, increasing higher and higher, demonstrating that we're only getting stronger every day. And contributions from our Snap-on Value Creation processes, safety, quality, customer connection, innovation, and rapid continuous improvement, or RCI, all combined to drive that progress, and progress there was. Opco operating income of $223.1 million increased $22.2 million from last year. The operating margin, it was 20.3%, up 70 basis points from last year and 120 basis points from 2019, as adjusted for the favorable legal settlement in that period.
For financial services, operating income of $70.4 million increased 7.8% and credit losses were down, continuing the positive trends, despite the lingering effects of the pandemic. And that result combined with opco for a consolidated operating margin of 24.8%, a 90 basis improvement from last year and 120 basis points from the as adjusted 2019 result. First quarter EPS, it was $4, up 14.3% from last year's $3.50 and 32.9% above the as-adjusted $3.01 recorded in 2019. To risk repeating myself, we believe Snap-on is stronger now than when we entered this great withering and our first quarter results are solid testimony. Now let's talk about our markets. Auto repair remains quite resilient. I think, we'd say, spending on vehicle maintenance and repair is up and technicians are earning more than ever. They've been working, performing essential tasks, making a nice living.
They're undaunted by the turbulence and they are optimistic about the future of their profession, about the outlook of individual transportation, and about the greater need for their skills as the vehicle part changes with new technology and all of that has led to an expansion in the ranks with the automotive repair technician count moving upward at its highest point for, I think, at least three decades. And as shopowners and managers will tell you, there's a need for many more. Vehicle repair strong -- is a strong and resilient market. You can hear it in our franchisees voices. You could feel it in a technician's wallet, and you can see it written across our numbers. Also in an auto repair, spanning right next to the tax, there are shop owners and managers, where our Repair Systems & Information Group, RS&I applies its trade. Demand for new and used cars is high, despite the limited supply, despite the limited supply.
Dealership repair, maintenance and warranty is rebounding, and dealers are starting to invest again. New vehicles are being released with a greater variety of drivetrains, with a greater variety of drivetrains than ever, from internal combustion engines, from internal combustion to hybrid to plug-in electric, to full electric, and the range of options is growing, more driver assist, more vehicle automation, increasing vehicle complexity. To tell you, it's all music to our ears. And we've been able to take advantage with our lineup of intelligent diagnostic products, by including the ZEUS, the TRITON and the APOLLO handheld units, with our celebrated Mitchell1 ProDemand repair information, our award-winning Tru-Point Advanced Driver Assist calibration system, and our 3D alignment systems like the new Hofmann Geoliner, all representing new technologies and big data deployed to make work easier right in the shop. Vehicle repair looks more promising than ever and Snap-on is poised to capitalize.
Finally, let's talk about critical industries. With Snap-on rolls out of the garage, solving tests of consequence. This is where C&I operates, the most international of our operations. And these are the customers that continue to be impacted hardest by the lingering virus, but they removed -- they've been recovering. And in the quarter, our results showed that trend. Despite some significant headwinds like supply chain disruption, commodity cost increases, some challenged business sectors like the military and international _ international aviation or aerospace, and troubled geographies, conflict impacted countries and those more prone to business interruptions as a means to control the virus. Well, C&I had it all. Despite the variation, though, we did see growth, improvement in a number of geographies, Asia and Europe and in a range of sectors like general industry, education and natural resources. They all combined to author organic growth against the continuing turbulence. So overall, I'd describe our C&I markets as challenged, but improving.
And looking forward, we believe they represent clear opportunity. Viewing on the overall picture, we believe there's been substantial progress along our runways for growth, enhancing the van network, expanding with repair shop owners and managers, extending to critical industries and building in emerging markets, leveraging our broadening product lines, wielding our strong brand and deploying the increasing understanding of the work that is the hallmark of Snap-On people, even in the throes of the pandemic shock. Two years ago, as we entered the virus, you all remember this, two years ago when we entered the virus, we recognized the resilience of our market and the strength of our model and projected a V-shaped recovery and that's how it played out. You can see it in the trends. Now let's turn to the segments. In the C&I Group, first quarter sales were $340.1 million, down $5.6 million due to $9.2 million of unfavorable currency, and $3.6 million or 1.1% -- and a $3.6 million or 1.1% organic growth. As we said, across C&I, results were mixed. But the period did see gains in Asia with Japan, India, South Korea, Thailand, Indonesia, rising. And Europe was also up, with Sweden, Belgium, Poland and France leading the way.
C&I's operating income was $45.7 million, down $5 million, reflecting $2.2 million of unfavorable foreign currency, with the organic volume gains more than offset by supply chain inefficiencies. Now when compared with the pre-pandemic levels of 2019, sales were up 5.5%, including a 3.6% organic gain and the OI margin of 13.4% was down 100 basis points, but against 150 basis points impact of acquisitions and unfavorable currency. C&I has simply been more affected by the difficulties, macroeconomic challenges, geopolitical uncertainty, varying COVID conditions. It makes sense. But the operation is spread over more countries and more industries. It's challenging, but we are making some headway and we're enthusiastic about the possibilities going forward. As part of that view, we remain committed to extending in Critical Industries, and we'll keep strengthening our position to capture opportunities as they arise and enabling that attempt is our expanding line of innovative new products, designed to match the demands of the industries, industries that we serve and to make critical work easier.
One example is our family of microelectronic torque wrenches. And I've been talking about Snap-On electronic torque products for some time. But these smaller versions of our flagship offerings are gaining particular strength in the critical markets. Our latest, the connected Bluetooth model offers customers a solution when they need torque certification data in real time. The Snap-On Control Tech Micro Bluetooth wrench fills that requirement and combines it with the benefits of reduced size and lower weight, shorter than 12 inches and less than one pound, better accessibility and reduced operator fatigue, all while allowing users to interface with a Snap-on app or directly with customers with the customer's operating system. The ControlTech Micro Bluetooth offers a wide range of torque, five to 240 inch pounds, an all steel body construction, progressive LEDs for an enhanced user guidance and a 72-inch quarter-inch drive enabling efficient operation in tight areas, all with a plus or minus 2% accuracy. It's a package well-suited to critical sectors like aviation. And in the first quarter, our customers' orders confirmed that belief emphatically. Well, that's C&I. Hard one progress against the turbulence.
Now on to the Tools Group. Sales of $512.1 million, up $33.8 million, including $3 million of unfavorable currency, and $36.8 million or 7.7% organic gain, double digit growth in the U.S. being partially offset by challenges in the international oprations. The operating margin was 22.7%, up 200 basis points from last year's historically high level -- high 20.7%. And compared with the pre-virus levels, sales grew 24.8%, and this year's 22.7% operating margin was up 630 basis points compared with 2019. The Tools Group is -- the Tools Group is responding to the challenges of the day, taking advantage of increasing vehicle complexity, increasing its product advantage, fortifying its brands, and further enabling its franchisees and the results show it. I keep saying that, but that's what's written across our performance this quarter.
We do believe our runway for coherent growth, enhancing the franchise network, represents a resilient and expanding opportunity. And we're realizing some of that potential across the van channel. The evidence is unmistakable in our franchisee metrics. Again, this quarter, they remain clearly favorable. And based on those measurements, we believe the franchisees have never been stronger, and they say so themselves emphatically, pumped in time for more that's what they are. And in our direct interactions at events like the past January's kickoff, back again this year in person. It was a great affair, well-attended, strong orders, visible commitment to our brand. Our franchisees, entrepreneurs and professionals all are enabled by their increased selling capabilities, broadly and deeply confident in their prospects, in the company's prospects and eager to reach higher. That's an important factor. And there's a number of reasons for that optimism, but a big one is rooted in Snap-on value creation, customer connection and innovation, authoring new products, clearly making work easier, born out of observing changing work in shops on an everyday basis, just like the franchisees.
And that's the reason our tool storage sales were up nicely in the quarter, driven in part by our -- they were driven in part by our exciting new line of mobile carts. Over the last several years, we've been enhancing our carts. One example is our KRSC range of mobile storage solutions, the only professional grade carts in the market, they're built in our Iowa plant. I just saw them running down, I was just there seeing those units roll down the line. The KRSC are designed for maximum strength and durability. They're constructed with a heavy gauge steel, to form a one piece, fully welded body with reinforced corners, and that's a significant and unique benefit in the mobile storage arena. These 30 parts make it easy to move even the heaviest tools from bay-to-bay. They come in an attractive range of colors and trims, just like they are full-sized Big Brother boxes. And they're offered in either a sliding split top, providing usable work surface, while allowing substantial access to the top drawer or a single piece flip flop, allowing quicker and broader access to the most frequently used tools.
Our new cart also has -- also features full wide drawers for maximum flexibility and offer power options for charging cordless tools. The KRSC -- the KRSC, you can to say it in these three words, durability, versatility, and functionality. They're great for meeting -- they're great for newer mechanics, as an affordable way to own some serious Snap-on tool storage. And at the same time, they're attractive for veterans. They're attractive for veterans, giving them the opportunity to improve productivity by expanding their mobility around the shop. This quarter, as repair work and tech wages are on the rise, we received record orders, proving that when innovation meets a resilient market, demand follows. We said that vehicle repair was growing was growing, and it is. Complexity would accelerate the market upward and it has. And we're working hard to position our franchisees to take advantage. And you can see it in the Tools Group results, seven straight above pre-pandemic gangbuster's quarters.
Now, let's speak of RS&I. First quarter sales rose 50.6% or -- $50.6 million or 14.6% with gains across the board. Organic growth was 13.3%, driven by undercar equipment and OEM dealership activity, delivering double-digit expansion. And by the diagnostics and information products, the independent shops advancing low single-digits. Compared with 2019 sales -- compared with 2019, sales grew $70.3 million, 21.4%, including 56.9% -- including $56.9 million or 17.4% organic gain, $15.2 million from acquisitions and $1.8 million of unfavorable foreign currency. Operating earnings of 91.6% increased $10.2 million from 2021 and the OI margin was 23%, down 40 basis points, but primarily due to acquisitions and the rise of lower-margin undercar equipment. We clearly see the potential of our runways for growth in the RS&I Group, expanding Snap-on's presence in the garage, which coherent acquisitions and a growing line of powerful products. The organic growth in the quarter was broad-based, but once again, undercar equipment expanded at double-digits and progress in one of our newest product groups, collision repair helped author that positive. And we're doubling down on the potential in that arena by utilizing the same broad database with deep content as used in our ProDemand vehicle repair solutions.
Big data aimed specifically at the body shop, vehicle measurements to guide body work, repair information to aid in standard shop work, and calibrations to restore the sensor networks that support ADAS or advanced driver assistance systems. It's a combination that's increasingly essential for every collision shop. And we believe it is going to be a big seller. RS&I also got a nice boost from winning a number of significant essential tools and equipment programs for OEM dealerships. As we expected, we started to see new launches for both electric power and for internal combustion vehicles, and RS&I is right at the front. So we're quite positive about RS&I's expanding position with vehicle repair shop owners and managers and are very confident in the opportunities as the vehicle industry evolves. So that's the highlights of our quarter. Progress in the turbulence. C&I, growing despite the headwinds. The Tools Group, strong and confident. RS&I solid. Overall organic sales rising 8%. Opco operating margin, 20.3% and EPS $4, up significantly. And most importantly, more testimony that Snap-on has emerged from the turbulence much stronger than when it entered. It was an encouraging quarter.
Now I'll turn the call over to Aldo. Aldo?
