You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: We have on the call today, Nick Pinchuk, Snap-on's chief executive officer; and Aldo Pagliari, Snap-on's chief financial officer.
Aldo will then provide a more detailed review of our financial results.
As usual, we have provided slides to supplement our discussion.
These slides will be archived on our website along with a transcript of today's call.
As usual, I'll start the call by covering the highlights of our third quarter and along the way I'll give you my perspective on our results.
On our market, they are positive and more than resilient, and I'll speak about our progress.
It's been considerable, each period demonstrating increasing strength even when in the midst of silencing headwind.
And we'll also speak about what it all means for our future.
And then Aldo will move into a more detailed review of the financials.
Our reported sales in the quarter were $1,037.7 million.
They were up 10.2%, including $9.6 million of favorable foreign currency and $19.5 million of acquisition-related sales.
Organic sales growth was up 7%, with 7% gains in every group.
It was our fifth straight quarter of above pre-pandemic performance and Snap-on value creation processes, safety, quality, customer connection, innovation and rapid continuous improvement, or RCI, as we call it, all combined to drive that progress and progress it was.
opco operating income of $201.3 million was up $15.6 million from last year.
The OI margin was 19.4%, down 30 basis points, impacted negatively by acquisitions, but still very strong at a strong level.
For financial services, operating income of $70.6 million increased 7.6% and the delinquencies were down even below the 2019 pre-pandemic levels, a continued testimony to our unique business model and its ability to navigate the most threatening of environments.
First quarter earnings per share was $3.57, up $0.29 or 8.8% from last year.
And as I said before, we believe Snap-on is stronger now than when we entered this great withering and our third-quarter results testifies to just that.
Compared with 2019, before we ever heard of the virus, our sales grew $135.9 million or 15.1%, which includes $21 million from acquisition-related sales, $13.6 million of favorable foreign currency and a $101.3 million or 11.1% organic gain.
And that 2021 opco operating margin of 19.4% was up 80 basis points from the pre-pandemic levels, even while absorbing the impact from acquisitions and while meeting what we can call a considerable disruption of these days.
Now let's talk about the markets.
Water repair remains quite resilient.
The technicians are prospering.
They know they weather the depths of the COVID shock, learn to accommodate the virus environment and are well along the psychological recovery.
They've been at their post for the last 18 months undoing it, and they won't be shots again, 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 park changes with new technology.
Vehicle repair is a strong and resilient market.
You can hear it in the franchisees voice and you can see it written clearly across our numbers every quarter.
Also on auto repair, there are our shop owners and managers different from the tech.
That's where our repairs information group, RS&I's trade.
Demand for new and used cars is high despite limited supply in dealership prepared maintenance and warranty is rebounding, and dealers are starting to invest again.
And we've been able to take advantage with groundbreaking products like our award-winning Tru-Point Advanced Driver Assistance calibration system.
Our new diagnostic, our new diagnostic TRITON-D10, intelligent diagnostic and our claimed Mitchell 1 ProDemand repair estimating guide, all representing new technologies and data deployed to make work easier in the shop.
Vehicle repair looks more promising than ever and Snap-on is poised to capitalize.
Now let's talk about critical industries where Snap-on rolls out of the garage, solving tasks of consequence.
These are commercial industrial or C&I operates.
The virus had a much longer impact on these customers.
They were slower to accommodate, but they are recovering.
And in the quarter, our results showed that trend, gains in North America, Europe and in Asia, all over the globe.
So overall, I describe our C&I markets as improving.
And coupled with the strength of the auto repair sectors, our markets are beyond resilient, and we're ready and well positioned to make progress along those run rate to recover.
At the same time, it's clear that we have ongoing potential on our runways for improvement.
The Snap-on value creation processes.
They never been more important, helping to counter the turbulence of the day, especially important with customer connection, understanding the work of professional technicians and innovation, matching that insight with technology, driving new products.
And just this quarter, Snap-on was prominently represented with nine Professional Tool & Equipment News, we call it P10 People's Choice Awards where the actual users, the technicians make the selection.
We're also recognized with two P10 innovation awards, and we're honored with two motor magazine Top Tool awards.
An essential driver of Snap-on growth is innovative product that makes work easier and the awards, [Inaudible], our testimony that great Snap-on products just keep coming, matching the growing complexity of the task, becoming more essential to technicians and driving our forward progress.
That's the environment, pretty positive.
Now we'll move to the operating groups.
In C&I, volume in the quarter rose 13.9% or $42 million versus 2020 on significant growth across all divisions, reflected a $32.9 million or 10.6% organic uplift and $7.5 million from our AutoCrib acquisition.
And double-digit growth in our European hand tool businesses and a high single-digit rise in critical industries led the way.
C&I operating income of $53.6 million was up $10.5 million or 24.4%, and the operating margin was 15.3%.
That's an increase of 130 basis points versus last year.
I'd say that's an intention getting rise against the wind.
Now compared to the pre-pandemic 2019 results, sales were up 4.8%, including a 0.9% organic gain.
And that OI margin of 15.3% was up 90 basis points against the 70-point impact of acquisitions and unfavorable currency.
Once again, SNA Europe delivered double-digit growth beyond pre -- double-digit growth beyond pre-virus levels against the complex and varied marketing environment propelled by the customization power of their [Inaudible] to management system.
And our Industrial division roles in critical industries, recording nice gains in general industry, heavy-duty education and U.S. aviation, a number of positive sectors overcoming weakness and continuing weakness in the military and natural resources.
P&I is rising, and we're enthusiastic about the possibilities.
We'll keep strengthening our position to capture those opportunities and enabling that intent is our expanding lineup of innovative new products.
In the third quarter did see some great new offerings.
Like our 14.4-volt 3h-inch drive brushless reaction, the CTR at 61.
And it's no wonder.
It's a powerful combination of strength and speed, high torque, 60-foot [Inaudible], the bus loose, very suborn bolts and rapid operations, 275 RPM for getting those fashions off in quick time.
made our -- made in our Murphy, North Carolina plant, and it features a full frame brushless motor for longer run time and durability.
It includes a safety switch that shuts in an [Inaudible] safety switch that shuts down the tool after two minutes of continuous use that's eliminating the chance of overheating.
It also has a super bright aluminum front-facing light that stays illuminated after the trigger is released, allowing easy and immediate inspection of the work.
This ratchet also features a built-in break that stops the tool from throwing or fasteners, which is -- it seems like not much, but it's an important safety feature for technicians.
And it also offers a great cushion group that makes for more comfortable tool control even during extended use.
The CGR861, power, speed and comfort, It's in a very compact package.
It's a mighty mic for accomplishing critical tasks and the professionals love it.
Well, that's C&I, continuing upward, exceeding pre-pandemic volumes, strong profitability and positions for more.
Now onto the Tools Group.
Sale of $471.4 million, up $21.8 million, including $4.9 million of favorable currency and a $16.9 million or 3.7% organic gain.
Growth in the U.S. -- both in the U.S. and the international operations.
And the operating margin was 20.8%, one of our highest effort and up 140 basis points from last year.
Compared with the pre-virus 2019 level, the organic gain was $80.4 million or 20.6%.
And the 20.8% operating margin was up 700 basis points compared with the pre-pandemic level, 700 basis points in the midst of operating turbulence.
Tools Group is responding to the challenges of the day, increasing its product advantage, fortifying its brands and further enabling its franchisees, giving them more selling capacity, it's all working.
Five strong quarters of above pre-pandemic performance says it's so.
Now the third quarter is when we hold our -- most of you know this, the third quarter is when we hold our annual Snap-on Franchisee Conference, our SFC.
This year, we're back again in person at the Gaylord in Orlando, Florida.
Over 9,000 attendees, a record.
We have training seminars in sales growth and intelligent diagnostics.
They're well attended and well received.
And we had several football fields of products.
So our franchisees could get up close and personal with our latest innovations.
For the franchisees, the SFC is an opportunity for learning, for touching and ordering new products and for recharging their Snap-on batteries and believe me, they are charged.
For the company, the SFC is an opportunity to gauge the franchisees' outlook on the business.
One quantitative way is orders.
Well, they were up, strong double digits over last year's virtual live from the Forge event, and from the 2019 SFC live in Washington, D.C. And when I say up, I mean all of our product categories showed substantial gains over both of those events.
And so that's the quantitative look at it qualitatively, I spoke with many of our franchisees.
And I can attest that they were beaming, showing a lot of confidence in our business and declaring considerable optimism on their future days and decades ahead with Snap-on.
We do believe our franchisees are continuing to grow stronger each quarter, and we continue to invest in our future.
And if you were with us in Orlando, you would have seen it unmistakably, and we are investing, building franchisees' ability to use the direct interface with technicians, enabling them to better communicate their unique capability and the unique capability and growing technology of Snap-on product lines.
We have great confidence in the power of our products and there are real reasons for the confidence.
You heard about the product awards.
Well, beyond that, there's a continuous stream of terrific new offerings.
During the SFC, the Tools Group unveiled its new KHP415, portable 40-inch substation power card.
It's targeted at entry-level technicians.
The ones working on a narrow scope of repairs.
It's built in our Algona, Iowa factory, and the new part enables young mechanics to invest a step on storage at a value price, while at the same time getting some very attractive professional features, a lockable comp compartment, fourfold distort and adjustable power tool rack that holds up the 10 tools and a power strip with five outlets and two USB ports for battery and device charging.
New cart, it was well received.
And it's quickly reaching what we call hit-product status.
Over $1 million of sales, it's rising upward on a steep trajectory.
Beyond products, we spent time working to expand franchisee selling capacity, harnessing social media, improving product training and RCI and the van operations, and it's working.
Selling capacity is up, and you can see it clearly in the five straight gangbuster quarters for our van network.
The Tools Group is on a very positive trend, ascending and leaving pre-pandemic levels way behind.
Now on to RS&I.
Sales were up 14.8% or $46.9 million, including a $31.7 million or 9.9% organic uplift.
Growth was weighted toward undercar equipment.
But our diagnostics and information businesses also chipped in with double-digit increases versus 2020.
RCI operating earnings were $83.3 million, representing a rise of $3.2 million.
Comparing with 2019, sales grew $41.7 million or 12.9%, including $24.2 million or 7.4% organic gain, nice growth.
The RS&I OI margin was down versus the last two years, attenuated by business mix, acquisitions and currency, but it was still a strong 22.9%.
So we clearly see the potential of our runway with RS&I, expanding Snap-on's presence in the garage with coherent acquisitions and a growing line of powerful products.
That's a nice turnaround, and it was led by innovative products like our 15K [Inaudible] post alignment lift.
It's really taking a hold in the repair shops as they've resumed investing.
This new 15K provides professional grade alignment lifting for a variety of vehicle sizes.
With open front columns, best-in-class ultrawide 26-inch runways and integrated 100-inch show long-wear plates.
It's suited to accommodate vehicles from compact passenger cars, compact passenger cars to big pickup trucks.
And it's low easy on approach angle makes it great, even for low-profile sports cars that are often a challenge for other lifts.
Made in our Louisville, Kentucky plant on an Assembly line is made or Louisville that took a plan on assembly line, I'm very familiar with.
I participated in an RCI event for that process.
Our new 15K has helped drive the recovery for undercar equipment, and it's driven the rise in RS&I volumes.
We're quite positive about RSI's possibilities to repair shop owners and managers as the vehicle industry evolves, it's got a great future.
So that's the highlights of our quarter.
Our fifth straight period exceeding pre-pandemic levels, C&I on track with strong sales and increasing profitability.
RS&I, undercar coming back, the Tools Group, strong, pumped and moving vertically the credit company solid in a storm and profitable.
The overall corporation, organic sales rising 7%.
opco operating margin, 19.4% and earnings per share of $3.57 a considerable rise and most important, more testimony that Snap-on has emerged from the turbulence much stronger than we entered.
It was an encouraging quarter.
The third quarter of 2021 exhibited another period of solid financial performance.
The results also compared favorably with the third quarter of 2019, which being a pre-COVID-19 time period, in some cases may serve to be the more meaningful baseline.
Net sales of $1,037.7 million in the quarter increased 10.2% from 2020 levels, reflecting a 7% organic sales gain, $19.5 million of acquisition-related sales and $9.6 million of favorable foreign currency translation.
Additionally, net sales in the period increased 15.1% from $901.8 million in the third quarter of 2019, including an 11.1% organic gain, $21.0 million of acquisition-related sales and $13.6 million of favorable foreign currency translation.
Consolidated gross margin of 50.2% improved 30 basis points from 49.9% last year.
The gross margin contributions from the higher sales volumes, 60 basis points of favorable foreign currency effects and benefits from the company's RCI initiatives more than offset higher material and other costs.
Operating expenses as a percentage of net sales of 30.8% increased 60 basis points from 30.2% last year, primarily due to 60 basis points of unfavorable acquisition effects.
Benefits from the higher sales volumes were offset by increased brand building, travel and other costs, including the restoration of our annual in-person Snap-on Franchisee Conference.
Operating earnings before financial services of $201.3 million compared to $185.7 million in 2020 and $167.7 million in 2019, reflecting an 8.4% and a 20% improvement, respectively.
As a percentage of net sales, operating margin before financial services of 19.4% compared to 19.7% last year and 18.6% in 2019.
Financial services revenue of $87.3 million in the third quarter of 2021 compared to $85.8 million last year, while operating earnings of $70.6 million increased $5 million from 2020 levels, reflecting the higher revenue as well as lower provisions for credit losses.
Consolidated operating earnings of $271.9 million increased 8.2% from $251.3 million last year and 18.9% from $228.7 million in 2019.
As a percentage of revenues, the operating earnings margin of 24.2% compared to 24.5% in 2020 and 23.2% in 2019.
Our third-quarter effective income tax rate of 23.7% compared to 23.4% last year.
Net earnings of $196.2 million or $3.57 per diluted share increased $16.5 million or $0.29 per share from last year's levels, representing an 8.8% increase in diluted earnings per share.
As compared to the third quarter of 2019, net earnings increased to $31.6 million or $0.61 per share, representing a 20.6% increase in diluted earnings per share.
Now let's turn to our segment results.
Starting with the C&I group on Slide 11.
Sales of $351.4 million increased 13.9% from $308.4 million last year, reflecting a 10.6% organic sales gain, $7.5 million of acquisition-related sales, and $2.6 million of favorable foreign currency translation.
The organic gain reflects higher activity in all of the segment's operations and includes high single-digit increases in sales to customers in critical industries.
Within the critical industries, year-over-year sales gains were achieved in general industry, heavy-duty and technical education, but were partially offset by declines in sales to the military and international aviation, both of which had particularly robust sales in the prior year period.
As a further comparison, net sales in the period increased 4.8% from 2019 levels, reflecting a $3 million organic sales gain, $7.5 million of acquisition-related sales and $5.6 million of favorable foreign currency translation.
As compared to 2019, sales in our European-based hand tools business were up mid-teens.
With respect to critical industry sales activity in that period, our lower sales to the military international aerospace and Natural Resources segments offset gains in our sales to technical education, heavy-duty, and general industry customers.
Gross margin of 38.2% improved 90 basis points from 37.3% in the third quarter of 2020.
Contributions from the higher sales volumes and benefits from RCI initiatives were partially offset by higher material and other costs.
Operating expenses as a percentage of sales of 22.9% improved 40 basis points as compared to last year, primarily due to the improved volumes, which were partially offset by higher travel and other costs.
Operating earnings for the C&I segment of $53.6 million compared to $43.1 million last year.
The operating margin of 15.3% compared to 14% a year ago.
Turning now to Slide 8.
Sales of Snap-on Tools Group of $471.4 million increased 4.8% from $449.8 million in 2020, reflecting a 3.7% organic sales gain and $4.9 million of favorable foreign currency translation.
The organic sales increase reflects a mid-single-digit gain in our U.S. business and a low single-digit gain in our international operations.
Net sales in the period increased 22.4% from $385.2 million in the third quarter of 2019, reflecting a 20.6% organic sales gain and $5.8 million of favorable foreign currency translation.
Gross margin of 45.8% in the quarter improved 30 basis points from last year, primarily due to the higher sales volumes and 130 basis points from favorable foreign currency effects, which offset higher material and other costs.
Operating expenses as a percentage of sales of 25% improved from 26.1% last year, primarily reflecting the higher sales.
Operating earnings for the Snap-on Tools Group of $98.2 million compared to $87.1 million last year.
The operating margin of 20.8% compared to 19.4% a year ago, an improvement of 140 basis points.
Turning to the RS&I Group shown on Slide 9.
Sales of $364.4 million compared to $317.5 million a year ago, reflecting a 9.9% organic sales gain, $12 million of acquisition-related sales and $3.2 million of favorable foreign currency translation.
The organic increase reflects double-digit increases in sales of undercar equipment and in sales of diagnostic and repair information products to independent shop owners and managers.
While activity focused on OEM dealerships was essentially flat.
As compared to 2019 levels, net sales increased $41.7 million from $322.7 million, reflecting a 7.4% organic sales gain, $13.5 million of acquisition-related sales and $4 million of favorable foreign currency translation.
Gross margin of 46.8% declined from 47.3% last year, primarily due to the impact of higher sales and lower gross margin businesses, increased material and other costs and 10 basis points of unfavorable foreign currency effects.
These declines were partially offset by savings from RCI initiatives and 60 basis points of benefits from acquisitions.
As a reminder, undercar equipment, which had healthy sales increases in the quarter, typically has a gross margin rate that is below the RS&I segment's average.
Operating expenses as a percentage of sales of 23.9% increased 180 basis points from 22.1% last year, primarily due to 170 basis points of unfavorable acquisition effects.
Operating earnings for the RS&I Group of $83.3 million compared to $80.1 million last year.
The operating margin of 22.9% compared to 25.2% a year ago.
Now turning to Slide 10.
Revenue from financial services of $87.3 million compared to $85.8 million last year.
Financial services operating earnings of $70.6 million compared to $65.6 million in 2020.
As a percentage of the average portfolio, financial services expenses were 0.8% and 0.9% in the third quarter of 2021 and 2020, respectively.
In the third quarters of both 2021 and 2020, the average yield on finance receivables was 17.8%.
The respective average yield on contract receivables were 8.5% and 8.4%, respectively.
Total loan originations of $269.3 million in the third quarter increased $16.5 million or 6.5% from 2020 levels, reflecting a 5.7% increase in originations of finance receivables and a 9.5% increase in originations of contract receivables.
Moving to Slide 11.
Our worldwide gross financial services portfolio increased $7.5 million in the third quarter.
The 60-day plus delinquency rate of 1.4% for U.S. extended credit compared to 1.5% in the third quarter of 2020 and 1.7% in the third quarter of 2019.
On a sequential basis, the rate is up 20 basis points, reflecting the typical seasonal increase of 20 to 30 basis points we experienced between the second and third quarters.
As it relates to extended credit or finance receivables, trailing 12-month net losses of $42.7 million represented 2.48% of outstanding at quarter end, down 22 basis points as compared to the same period last year.
Now turning to Slide 12.
Cash provided by operating activities of $186.4 million in the quarter reflects 92.5% of net earnings.
While this represents a decrease of $37.6 million from 2020 levels, this cash conversion rate compares favorably with 77.5% of net earnings in both the third quarters of 2019 and 2018.
The decrease from the third quarter of 2020, primarily reflects the higher net earnings being more than offset by net changes in operating assets and liabilities, including a $61.9 million increase in working capital.
This change in working capital is largely driven by the more typical seasonal inventory build in the third quarter of 2021 as compared to the reduction of inventory experienced in the period last year.
Inventory additions also reflect some increases in buffer stocks and higher levels of in-transit inventories associated with the supply chain dynamics being seen in the macro environment.
Net cash used by investing activities of $29.7 million included net additions of finance receivables of $7.6 million and $16.2 million of capital expenditures.
Net cash used by financing activities of $385.8 million included $250 million in senior note repayments, cash dividends of $66.3 million and the repurchase of 300,000 shares of common stock for $66.5 million under our existing share repurchase programs.
As of quarter end, we had remaining availability to repurchase up to an additional $197 million of common stock under existing authorizations.
Turning to Slide 13.
Trade and other accounts receivable increased $12.5 million from 2020 year end.
Days sales outstanding of 56 days compared to 64 days of 2020 year-end.
Inventories increased $43.1 million from 2020 year-end.
On a trailing 12-month basis, inventory turns of 2.7 compared to 2.4 at year-end 2020.
Our quarter end cash position of $735.5 million compared to $923.4 million at year-end 2020.
Our net debt to capital ratio of 10.3% compared to 12.1% at year-end 2020.
In addition to cash and expected cash flow from operations, we have more than $800 million in available credit facilities.
As of quarter end, there were no amounts outstanding under the credit facility, and there were no commercial paper borrowings outstanding.
That concludes my remarks on our third-quarter performance.
I'll now briefly review a few outlook items for the balance of 2021.
We now forecast that capital expenditures will approximate $90 million.
tax legislation that our full year 2021 effective income tax rate will be in the range of 23% to 24%.
The Snap-on third quarter can be summarized in one word, momentum.
Our markets are showing extraordinary possibilities, almost across the board with order repair the most advanced going beyond resilience.
We sold the COVID-19 playing out with our customers in three phases: shock, interruption in the face of virus uncertainty.
A combination of gradual learning to pursue essential work while staying safe and psychological recovery, our confidence in the future and return to normal buying.
But now, we're seeing a fourth phase, exhilaration of certainty that we're moving sharply to higher levels, ignited by the conviction that we have met and manage the virus and they want -- and that we won't get shocked again.
It's a bright outlook.
And Snap-on with continuing investment in product and brand and people is well positioned to serve that trend.
Of course, the COVID is still lingering, and its side effects, inflation and supply disruption around the loose, but Snap-on is strongly arrayed to engage those challenges.
A direct selling model and strong brand position enables agile pricing.
Our vertical integration and shorter supply chains make us less vulnerable to sourcing viscosities.
Our broad product line, more than 80,000 SKUs supports flexible marketing to guide around shortages, and our RCI culture drives cost offsets.
We found opportunities on our runway for growth and improvement even amid these challenging times, and you can see it in the numbers, encouraging.
C&I sales up both from last year and 2019, OI margin, 15.3% strong and rising 130 basis points and 90 basis points versus 2020 and 2019, respectively.
RS&I, up organically, 9.9% versus last year and 7.4% beyond the pre-pandemic levels.
OI margins of 22.9%.
And the Tools Group, organic volume rising 3.7% versus last year's record level and up 20.6% versus the day before the virus.
OI margin, it was 20.8%, up 140 basis points from last year and up 700 basis points from 2019.
It all led to our corporation being organically up 7% compared with last year and a strong 11.1% versus pre-pandemic numbers.
Overall, OI margin was 19.4%, solid in the face of turbulence in our credit company, navigating then certainly without disruptions.
And EPS, $3.57, rising emphatically versus all comparisons.
We have emerged from the virus stronger than when we entered, and the numbers confirm it.
We've now recorded 5, 5 straight quarters of above pre-pandemic performances, and we believe that with our markets reaching beyond resilience to exhilaration, with the capabilities of our model to overcome the challenges of the environment, and with a considerable advantage nurtured by our continuing investment in product, brand and people will continue to rise, maintaining our upward trajectory through the end of this year and well beyond.
I always know you're listening.
This is a period of great momentum for Snap-on.
You are the fuel that is ignited and fan that drive forward and upward.
For your success in creating this encouraging performance, you have my congratulations.
For the capabilities you bring to bear in achieving our progress every day, you have my admiration.

user
compname posts q3 earnings per share $3.57.
q3 earnings per share $3.57.
now anticipates that capital expenditures in 2021 will approximate $90 million.

assistant