Snap-On Tools Australia and New Zealand, a mobile franchise network selling professional tools and diagnostic equipment, has reported a 7.3 per cent sales increase.

Gross profit improved to 44.7 per cent of net sales in 2008, from 44.2 per cent in 2007. Net earnings of $54.6m increased 32.8 per cent from $41.1m in 2007.

Worldwide the company’s net sales of $697.8m increased $17.1m, or 2.5 per cent over the previous year.

The wholly owned subsidiary in Australia and NZ expects to increase sales from $52m for 2007 to $55m in 2008.

Ajit Ponnambalam, Snap-on Australia and New Zealand managing director, said: “We are encouraged by our global results and also very pleased with Australia and New Zealand’s results in comparison to this. Our strong business models and continuous innovation and improvement on all our products put us in a confident position to continue these encouraging results.

“Despite the global economic challenges, our core strategies and support from our global office will continue and help support improved year-over-year earnings again in the next quarter. We are working with our global headquarters to extend our presence in the emerging markets of Asia/Pacific,” continued Ponnambalam.

Although Australia/New Zealand only represents 150 of the Snap-on Tools Corporation’s 4,700 franchisees, last year 13 of these franchisees made it into the Corporation’s Top 100 franchisees ranked by sales, a clear indication of the company’s growth potential in the Australian market.