Global power equipment and floor care company Techtronic Industries Co. Ltd. (TTI) said group sales in 2012 rose 5.1% to US$3.852 billion. 2011's restated sales were $3.667 billion.
Hong Kong-based TTI, in the financial year ending Dec. 31, 2012, reported that profit attributable to shareholders grew 32.2% to $201 million.
TTI delivered organic growth in all geographic regions. Gross profit margin improved for the fourth year, to 33.5%, from 32.6% last year, on further productivity gains in operations. It attributed the strong results to new products, as well as growth in its industrial power tools business.
2012 earnings, before interest and tax, were up 18.6% to $260 million, with the margin improving by 80 basis points to 6.8%. Lowered interest expenses as a result of a reduction in debt also helped boost profits. Higher revenues and operational efficiency drove positive free cash flow to a record $275 million.
"Our disciplined implementation of the TTI strategic plan is yielding outstanding results across all of our business units and geographic regions," said TTI Chairman Horst Pudwill. "I am particularly pleased with the tremendous progress made in new product development and our excellent productivity gains, which are the catalysts for sales and profit growth. These results once again demonstrate the fundamental strength of TTI."
"I believe that TTI, with its powerful brand portfolio, has outstanding prospects for 2013 and beyond," said Joseph Galli, CEO of TTI. "Our new product programs, productivity improvement initiatives and cash management efforts all have solid momentum, supported by disciplined processes and rigorous management."
TTI was founded in 1985 and was listed on the Hong Kong stock exchange in 1990. The company has acquired a number of global floor care appliance brand names, including Hoover, Dirt Devil, and Vax floor care and appliances. The company also owns a number power tool and outdoor products brands with worldwide recognition, including Milwaukee, AEG, Homelite, and Ryobi.
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