Fourth quarter as reported sales of 1.0744 billion were up 12.5% from 2019, including 9.6 million of favorable foreign currency translations and $7.5 million of acquisition-related sales.
Organic sales rose 10.6% volume gains in the van channel, in OEM dealerships and diagnostics and repair information, in our European hand tools business, all demonstrating the abundant opportunities on our runway and our increased ability to take advantage of those opportunities.
From an earnings perspective, operating income, opco OI from the quarter of $216.2 million, including 2.8 million of direct costs associated with the virus, 1 million of restructuring charges for actions outside the United States and 1.5 million hit from unfavorable currency was up 26.1%.
And the opco operating margin, it was 20.1%, up 220 basis points, overcoming 30 basis points of unfavorable currency, 30 basis points, 30 points of COVID cost impact and 10 basis points of restructuring.
For financial services, operating income of 68.5 million increased 10.1% from 2019, all while keeping 60-day delinquencies flat to last year in the midst of the pandemic stress test and that result combined with opco for consolidated operating margin of 24.4%, 190 basis points improvement.
The overall quarterly earnings per share was $3.82, including a $0.02 charge for restructuring and that result compared to $3.08 last year, an increase of 24%, I did say new heights.
Now, for the full-year, sales were 3.593 billion, a 3.8% organic decline, principally on the first and second-quarter shock of the virus before the sequential gains of accommodation took hold.
Opco OI 631.9 million, including $12.5 million of restructuring charges, 11.9 million of direct costs associated with COVID-19 and 13.1 million of unfavorable currency compared to 716.4 million in 2019, which benefited from 11.6 million legal settlement in a patent-related litigation matter.
Opco OI margin, including a 30-basis-point impact associated with restructuring, 30 points of direct pandemic expenses, 30 points of unfavorable currency was 17.6% and compared with 19.2% in 2019, which incorporated 30 basis points of the nonrecurring benefit for the legal settlement.
But what it says is that despite the great disruption, our full-year OI margin was down only 40 basis points, apples to apples, demonstrating the special Snap-on's resilience that has enabled us to pay dividends every quarter since 1939 without a single deduction.
For the year, financial services registered OI of 248.6 million versus the 245.9 million in 2019.
Overall, earnings per share for the period of $11.44 was down 7.8% from the $12.41 reported last year -- 2019.
Adjusting for the restructuring in the current year and the onetime legal benefit in the prior year, 2020 earnings per share as adjusted reached $11.63, down 5.1%.
In C&I, volume in the fourth quarter of $364.4 million, including 7.5 million from acquisitions and 6.5 million of favorable foreign currency, was up 3.3% as reported.
From an earnings perspective, C&I operating income of 56.2 million increased 11.2 million, including 1.3 million of unfavorable foreign currency effects and 1 million of COVID-related costs with sales up 3.3% as reported, flat organically.
OI grew 24.9%, a nice operating improvement.
And the OI margin for the group was 15.4%, up 260 basis points from last year, overcoming 70 basis points of unfavorable currency and 30 points of direct COVID costs.
Our new fit and go product line allows buyers to quickly develop semi bespoke kits in foam tool control, consists of more than 200 preconfigured different tool sets designed around 26-inch wide Rock N' Roll Cab available in three standard foam configurations, one-third drawer, two-thirds drawer and a full drawer.
As reported, sales of 20.2% to 494.9 million, including 2.2 million of favorable foreign currency and an 81 million or 19.6% organic increase, the second straight quarter of strong gain with the U.S. and International businesses both growing at double digits.
In the tools group operating earnings, 93.6 million, including 1.2 million of virus-related costs, that 93 points, including -- in fact, 93.6 million included 1.2 million of virus-related costs.
And that 93.6 million compared to last year's 54.3 million, an over 70% improvement.
Actually, the tools group recovered to positive territory for the full year, sales were up 2% organically, with OI rising almost 9% and OI margins up 110 basis points.
One was the franchise business review, where we were again recognized in the magazine's latest rankings for franchisee satisfaction as a top 50 franchise, marking the 14th consecutive year that Snap-on received that award.
That's similar to our Flank Drive systems on socket, 30% more torque applied to the fastener while still minimizing damages, eliminating rounded edges.
Second, when the fasteners have already been heavily rounded and are tough to grip, our Talon grip, diamond-serrated jaws, joined at -- located at the pliers tip, generate unparallel clamping forces up 57% -- up to a 57% increase in turning power.
Sales of 361.1 million in the fourth quarter, up 7.8%, 7% organically, excluding a 2.4 million of favorable foreign currency, a steep recovery from the depths of the pandemic.
RS&I operating earnings of 90 million improved 2.8 million as the mix of lower-margin OEM project sales diluted the volume improvement and as the group recorded $1 million in charges for a small European-focused restructuring.
We just began shipping our new 20.4 software update for our diagnostics platforms in North America, full coverage for the 2020 vehicles, additional reprogramming facility, increased functional test capabilities and an expansion of our unique advanced driver assistance or ADAS content, so critical these days for engaging vehicle automation.
And the 20.4 is another step in that direction.
And that's our fourth quarter; absorbing a shock, driving accommodation, moving onto psychological recovery, keeping our people safe while we serve the essential, all of that is working, building Snap-on's advantage and the results show us sequential gains from the third quarter and significant growth from last year, sales up 12.5%, 10.6% organically, OI margin, 20.1%, 220 basis points higher.
Financial service is continuing to deliver, navigating the virus with strength and without disruption, an earnings per share of $3.82, up 24%, all achieved while maintaining and expanding our advantages in products, brands and people, ending the year stronger, ready for more opportunities to come.
Net sales of $1.0744 billion in the quarter compared to $955.2 million last year, reflecting a 10.6% organic sales gain, $9.6 million of favorable foreign currency translation and $7.5 million of acquisition-related sales.
We've again identified direct costs associated with COVID-19, which totaled $2.8 million this quarter.
Also, in the quarter, we recorded $1 million of restructuring cost actions for Europe.
Consolidated gross margin of 48% compared to 47.2% last year.
The 80-basis-point improvement primarily reflects the higher sales volume and benefits from the company's RCI initiatives, partially offset by 30 basis points of unfavorable foreign currency effects and 10 basis points of direct cost associated with COVID-19.
Operating expenses as a percentage of net sales of 27.9%, improved 140 basis points from 29.3% last year, primarily reflecting the impact of the higher sales, which more than offset the 30 basis points related to restructuring and direct costs associated with COVID-19.
Operating earnings before financial services of $216.2 million, including $2.8 million of direct costs associated with COVID-19, $1 million of restructuring costs and $1.5 million of unfavorable foreign currency effects compared to $171.4 million in 2019, reflecting a 26.1% year-over-year improvement.
As a percentage of net sales, operating margin before financial services of 20.1%, including 30 basis points of direct costs associated to the COVID-19 pandemic and 30 basis points of unfavorable foreign currency effects, improved 220 basis points from 17.9% last year.
As a result, our 2020 fiscal year contained 53 weeks of operating results with the extra week relative to the prior year occurring in the fourth quarter.
With that said, financial services revenue of $93.4 million in the quarter of 2020 compared to $83.9 million last year, primarily reflecting the extra week of interest income and the growth in the financial services portfolio.
Financial services operating earnings of $68.5 million, increased $6.3 million from 2019 levels, principally due to the higher revenue but partially offset by increased variable compensation and other costs; consolidated operating earnings of 284.7 million, including $2.8 million of direct COVID-related costs, $1 million of restructuring costs and $1.3 million of unfavorable foreign currency effects compared to $233.6 million last year.
As a percentage of revenues, the operating earnings margin of 24.4% compared to 22.5% in 2019.
Our fourth-quarter effective income tax rate of 21.8% compared to 22.3% last year.
Finally, net earnings of $208.9 million or $3.82 per diluted share, including a $0.02 charge for restructuring increased $38.3 million or $0.74 per share from 2019 levels, representing a 24% increase in diluted earnings per share.
Sales of $364.4 million increased 3.3% from $352.9 million last year, reflecting $7.5 million of acquisition-related sales and $6.5 million of favorable foreign currency translation, partially offset by 0.7% organic sales decline.
While organic sales were essentially flat as compared to last year, they did improve sequentially in a more meaningful manner than what we see in our typical seasonal patterns with organic sales up 14.6% from the third quarter of 2020.
Gross margin of 37.8% improved 230 basis points year-over-year, primarily due to increased sales and higher gross margin businesses and declines in lower gross margin sales to the military, as well as from benefits of RCI initiatives.
These increases were partially offset by 60 basis points of unfavorable foreign currency effects and 20 basis points of direct COVID-19 cost.
Operating expenses as a percentage of sales, 22.4% improved 30 basis points as compared to last year.
Operating earnings for the C&I segment of $56.2 million, including $1.3 million of unfavorable foreign currency effects and $1 million of direct COVID-19 cost compared to $45 million last year.
The operating margin of 15.4% compared to 12.8% a year ago.
Sales in the Snap-on tools group of $494.9 million increased 20.2% from $411.7 million in 2019, reflecting a 19.6% organic sales gain and $2.2 million of favorable foreign currency translation.
This reflects a 9.5% organic sequential gain over a strong third-quarter 2020 sales performance.
Gross margin of 42.9% in the quarter improved 270 basis points, primarily due to the higher sales volumes and benefits from RCI initiatives.
Operating expenses as a percentage of sales of 24% improved from 27% last year, primarily due to the impact of higher sales volumes and savings from cost containment actions, which more than offset $1 million or 30 basis points of COVID-19-related costs.
Operating earnings for the Snap-on tools group of $93.6 million compared to $54.3 million last year.
The operating margin of 18.9% compared to 13.2% a year ago, an increase of 570 basis points.
Sales of $361.1 million compared to $335 million a year ago, reflecting a 7% organic sales gain and $2.4 million of favorable foreign currency translation.
Sequentially, RS&I organic sales improved by 13.2%.
Gross margin of 46.1%, including 10 basis points of unfavorable foreign currency effects, declined 160 basis points from last year, primarily due to the impact of higher sales of lower gross margin businesses, including facilitation program related sales to OEM dealerships.
Operating expenses as a percentage of sales of 21.2%, including 30 basis points of cost from restructuring, improved 50 basis points from 21.7% last year, largely reflecting the mix of business activity in the quarter.
Operating earnings for the RS&I group of $90 million compared to $87.2 million last year.
The operating margin of 24.9%, including the effects of 20 basis points of unfavorable foreign currency effects and 10 basis points of direct costs associated with COVID-19 compared to 26% a year ago.
Revenue from financial services of $93.4 million compared to $83.9 million last year.
Financial services operating earnings of $68.5 million compared to $62.2 million in 2019.
Financial services expenses of $24.9 million increased $3.2 million from last year's levels, primarily due to higher variable compensation and other costs, partially offset by a year-over-year decrease in provisions for credit losses.
Compared to the fourth quarter last year, provisions for credit losses were lower by $700,000, while net charge-offs of bad debts were lower by $1.3 million.
As a percentage of the average portfolio, financial services expenses were 1.1% and 1% in the fourth quarters of 2020 and 2019, respectively.
In the fourth quarter, the average yield on finance receivables of 17.7% in 2020 compared to 17.5% in 2019.
The respective average yield on contract receivables was 8.5% and 9.2%.
As of the end of the quarter, approximately $13 million of these business operating support loans remain outstanding.
Total loan originations of $272.4 million in the quarter increased $10 million or 3.8% from 2019 levels, reflecting a 4.5% increase in originations of finance receivables, while originations of contract receivables were essentially flat.
Our year-end balance sheet includes approximately $2.2 billion of gross financing receivables, including $1.9 billion from our U.S. operation.
In the fourth quarter, our worldwide gross financial services portfolio increased $20.8 million.
The 60-day plus delinquency rate of 1.8% for the United States extended credit is unchanged from last year and reflects the seasonal increase we typically experience in the fourth quarter.
As it relates to extended credit or finance receivables, trailing 12-month net losses of $45.6 million represented 2.62% of outstandings at quarter end, down 8 basis points sequentially and down 29 basis points as compared to the same period last year.
Cash provided by operating activities of $317.6 million in the quarter increased $120.9 million from comparable 2019 levels, primarily reflecting the higher net earnings and net changes in operating assets and liabilities, including a $53.5 million decrease in working investment, primarily driven by inventory reductions in the period.
Net cash used by investing activities of $73.6 million included $35.4 million for the acquisition of AutoCrib, capital expenditures of $26.5 million and net additions to finance receivables of $15.9 million.
Free cash flow during the quarter of $275.2 million was 129% in relation to net earnings.
Net cash used by financing activities of $111.6 million included cash dividends of $66.8 million and the repurchase of 460,000 shares of common stock for $78.7 million under our existing share repurchase program.
Full-year 2020 share repurchases totaled 110,900 shares for $174.3 million.
As of year-end, we had remaining availability to repurchase up to an additional $275.7 million of common stock under existing authorizations.
Trade and other accounts receivable decreased $53.9 million from 2019 year-end, days sales outstanding of 64 days compared to 67 days of 2019 year-end, inventories decreased $13.9 million from 2019 year-end, including a $40.1 million inventory reduction, partially offset by increases from $23.2 million of currency translation and $3 million from acquisitions, on a trailing 12-month basis, inventory turns of 2.4 compared to 2.6 at year-end 2019 and 2.4 at the end of the third-quarter 2020, our year-end cash position of $923.4 million compared to $184.5 million at year-end 2019, our net debt-to-capital ratio of 12.1% compared to 22.1% at year-end 2019.
In addition to cash and expected cash flow from operations, we have more than $800 million in available credit facilities.
We anticipate that capital expenditures will be in the range of 90 to $100 million.
We currently anticipate absent of any changes to U.S. tax legislation that our full-year 2021 effective income tax rate will be in a range of 23 to 24%.
Sales up 12.5% as reported, 10.6% organically.
OI margin, 20.1%, up 220 basis points against 30 basis points of unfavorable currency, 10 basis points of restructuring charges and 30 basis points of direct COVID cost, strong improvement.
OI margin of 15.4%, rising 260 points.
Organic sales up 7% organically, OI of 24.9% down, but still in heavy territory.
Sales up 19.6% organically, profits up 72.4%, OI margin of 18.9%, rising 570 basis points, good numbers.
And all of that, it all came together to author an earnings per share in the quarter of $3.82, up 24% from 2019; new heights in the great turbulence of 2020.

Summary:
Organic sales rose 10.6% volume gains in the van channel, in OEM dealerships and diagnostics and repair information, in our European hand tools business, all demonstrating the abundant opportunities on our runway and our increased ability to take advantage of those opportunities.
The overall quarterly earnings per share was $3.82, including a $0.02 charge for restructuring and that result compared to $3.08 last year, an increase of 24%, I did say new heights.
And that's our fourth quarter; absorbing a shock, driving accommodation, moving onto psychological recovery, keeping our people safe while we serve the essential, all of that is working, building Snap-on's advantage and the results show us sequential gains from the third quarter and significant growth from last year, sales up 12.5%, 10.6% organically, OI margin, 20.1%, 220 basis points higher.
Financial service is continuing to deliver, navigating the virus with strength and without disruption, an earnings per share of $3.82, up 24%, all achieved while maintaining and expanding our advantages in products, brands and people, ending the year stronger, ready for more opportunities to come.
Net sales of $1.0744 billion in the quarter compared to $955.2 million last year, reflecting a 10.6% organic sales gain, $9.6 million of favorable foreign currency translation and $7.5 million of acquisition-related sales.
Finally, net earnings of $208.9 million or $3.82 per diluted share, including a $0.02 charge for restructuring increased $38.3 million or $0.74 per share from 2019 levels, representing a 24% increase in diluted earnings per share.
We anticipate that capital expenditures will be in the range of 90 to $100 million.
We currently anticipate absent of any changes to U.S. tax legislation that our full-year 2021 effective income tax rate will be in a range of 23 to 24%.
Sales up 12.5% as reported, 10.6% organically.
And all of that, it all came together to author an earnings per share in the quarter of $3.82, up 24% from 2019; new heights in the great turbulence of 2020.