HONG KONG: Hong Kong-based global power equipment and floor care company Techtronic Industries Co. Ltd. (“TTI”/ The Group) reported that it achieved record results with double-digit growth in revenue, gross profit and net income in the first half of 2015. Profit margins continued to improve with revenues increasing by 10.0% or 14.4% when excluding the effect of foreign currency exchange. Gross margins improved by 60 basis points to 35.6% and net profit increased by 16.5%, delivering double-digit growth for the sixth consecutive reporting period. Basic earnings per share increased by 16.4% to 8.67 US cents.
All regions delivered impressive organic growth, demonstrating the Group’s ability to capture market share through innovation. The Power Equipment segment, comprising 79.1% of the Group’s revenue, generated double-digit sales growth of 16.7%, outpacing the power tool industry with our Milwaukee Tool business recording a 24.4% increase in global sales. Investments in R&D, geographic expansion and marketing programs have driven the flow of innovative new products, increased distribution reach and expanded market share.
Mr. Joseph Galli, CEO of TTI, commented, “Our focus on driving the gross margin to new levels has yielded the seventh consecutive reporting period of gross margin improvement. The Group’s strong first half results reflect the continued success of our strategy to bring to market exciting new products with cutting-edge technology such as our industry-leading lithium cordless platforms, powerful brands built on in-depth understanding of customer needs, loyalty from end-users, and consistent commitment to continued improvements in operational efficiency.”
Mr. Horst Pudwill, Chairman of TTI, said, “TTI is firmly positioned to build on the positive momentum generated by our businesses and we are confident that we will sustain solid organic growth in the second half of the year. We remain focused on propelling our business forward through investments in product development, marketing, and geographic expansion. Our ongoing commitment in these areas will continue to deliver value to support robust business growth.”
