- Continued margin improvement
- Positive free cash flow
- Interim dividend increased by 35.0%
- Reduced gearing from 66.1% to 37.4%
- New products driving growth
HONG KONG, Aug. 16, 2012
/PRNewswire/ -- Hong Kong-based global power equipment and
floor care company Techtronic Industries Co. Ltd. ("TTI"/
The Group) (stock code: 669, ADR symbol: TTNDY) announced that it
achieved record sales of US$1,855
million for the six-month period ended 30 June 2012, up 4.0% over the corresponding
period in 2011, and record net profit of US$96 million, an increase of 20.1% as compared
to the same period last year. Total organic Group sales were up
5.2% before foreign currency impact. Gearing improved to 37.4% as
compared to 66.1% at June 30,
2011.
This performance was a result of our ability to generate organic growth in existing
and new markets, with powerful brands
that connect with end-users, innovative new
products with leading-edge technologies, and continuous
improvement through operational efficiency and aggressive
procurement programs. New products contributed to the Group's
growth and comprised about one third of sales. Gross margin
improved to a record level for the period.
TTI delivered strong growth in its Power Equipment business,
which delivered US$1.4 billion in
sales for 1H 2012, representing a 10.1% increase compared to the
first six months of 2011. The Group cited double-digit gains across
all markets in industrial tools backed by the MILWAUKEE® brand's
advanced technology FUEL™ and REDLITHIUM™ cordless tools. Growth
was recorded in consumer tools driven by the RYOBI® 18-volt One+
System® and exciting new Ryobi cordless Outdoor Products.
Mr. Horst Pudwill, Chairman of
TTI, said, "I am proud that we have again achieved record sales
and profit. This strong performance combined with our ability to
improve profit margins demonstrates the Group's ability to
profitably drive growth. We believe that TTI will continue
delivering market leading results for our shareholders."
Mr. Joseph Galli, CEO of
TTI, commented, "TTI has a reputation for continuously bringing
to market high-quality products that resonate with our customers
through unrelenting focus on R&D and innovation. Leading-edge
product platforms, such as MILWAUKEE® M12® and M18® as well as the
RYOBI® ONE+ System®, will help us grow as we drive organic
expansion across our major markets and new geographic areas. With
our stable of powerful brands and pipeline of new products, we are
firmly positioned to build on our positive results."
About TTI
Founded in 1985 and listed on the Stock Exchange of Hong Kong
Limited in 1990, TTI is a world-class leader in quality consumer,
professional and industrial products marketed to the home
improvement, hardware, and construction industries. An unrelenting
strategic focus on Powerful Brands, Innovative Products,
Exceptional People, and Operational Excellence drives our
success.
TTI's powerful brand portfolio includes MILWAUKEE®, AEG® and
RYOBI® power tools, accessories and hand tools, RYOBI® and
HOMELITE® outdoor products, and HOOVER®, DIRT DEVIL® and VAX® floor
care and appliances.
TTI is one of the constituent stocks on the Hang Seng HK
SmallCap Index under the Hang Seng Composite Index, the FTSE
All-World Hong Kong Index and the FTSE Xinhua Hong Kong Index. For
more information, please visit www.ttigroup.com.
All trademarks are intellectual property of their respective
owners and are protected under trademark law. AEG® is a registered
trademark and its use is pursuant to a License granted by AB
Electrolux (publ). RYOBI® is a registered trademark and its use is
pursuant to a License granted by Ryobi Limited.
