Power tool-maker TechTronic Industries is expecting a good financial performance this year despite the downturn in the United States economy, as orders on hand already exceed last year's sales. Chairman Horst Julius Pudwill said yesterday that demand for the company's products - power tools, floor-care appliances and solar and electronic goods - had not declined. Demand relating to house construction and remodelling, as well as the 'do-it-yourself' market remained strong, he added. Last week, the company reported a 21.4 per cent growth in net profit to HK$190.53 million as turnover rose 68.6 per cent to HK$4.55 billion on the back of the acquisition of the North American operation of Japan's Ryobi Power Tools for US$95 million. Although the acquisition has resulted in the company's debt gearing ratio rising to 90 per cent last year, Mr Pudwill said liquidation of inventory was expected to be able to cut the ratio to 60 per cent by the end of the year. He said the company would soon announce a long-term contract to supply to 'one of the largest home centres in the world'. The company plans annual capital expenditure of US$15 million to US$20 million in the next two years to boost the capacity of its mainland production facilities by at least 30 per cent.