Innovation is key to success
Hong Kong-listed global power equipment and floor-care company Techtronic Industries (TTI) saw a healthy net-profit surge helped mainly by product innovation.
The company says its net profit grew by 72.8 per cent, reaching a record US$80 million, for the period ending June 30. The group's sales in the first half of this year totalled US$1.8 billion, an increase of 11 per cent over the same period last year.
The company also says growth in the first half was achieved through product development and innovation across all its businesses, and significant expansion in industrial tools and accessories.
According to Techtronic, the power equipment business delivered a robust 11.3 per cent growth in sales led by Milwaukee, Ryobi and AEG brands.
Likewise, the company's North American business achieved high single-digit growth, while the rest of world business grew double-digit. The Floor Care and Appliances business grew sales by 10.4 per cent, led by the continuation of product innovation under the Hoover, Dirt Devil and Vax brands.
Horst Pudwill, chairman of TTI, says he is pleased with the results as they show the strength of the company's brand.
'TTI continues to demonstrate its strengths in powerful brands and innovative products to capture market share and capitalise on growth opportunities. We enter the second half with strong momentum across our businesses and are firmly positioned to build on the positive results of the first half,' Pudwill says.
Joseph Galli, TTI's CEO, says management is excited about the new range of products and accessories. 'New products are the engine of TTI's growth. We are excited about our range of new cordless lithium ion products and accessories. We are driving TTI's expansion into both core and under-represented markets.
'Our value engineering, lean manufacturing, and supply chain efficiency programs are delivering productivity and margin improvements,' Galli says.
Founded in 1985, and headquartered and listed in Hong Kong in 1990, TTI has established a world-class leadership in quality consumer, professional and industrial products marketed to the home improvement, hardware, and construction industries.
From its launch, TTI has an unrelenting strategic focus on strong brand and innovative products.
The company takes pride in hiring and rewarding exceptional people, believing that operational excellence drives success.
TTI's brand portfolio includes Milwaukee, AEG and Ryobi power tools, accessories and hand tools.
Its also owns Homelite outdoor products, Hoover and 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.