Power tool maker Techtronic Industries is aiming to pay off its substantial debts next year, chairman Horst Pudwill says. The company's gearing rose to 90 per cent after it acquired two tool-making subsidiaries from Swedish conglomerate Atlas Copco for US$713 million last year. 'We want to get our balance sheet back in shape. Our gearing ratio is now on the high side,' said Mr Pudwill. 'Our priority is to consolidate our business.' Frank Chan Chi-chung, group executive director, said cash flow would be used to eliminate debt. He said Techtronic did not need to amortise goodwill from its acquisition and had no disagreement with its auditor Deloitte Touche Tohmatsu on that issue. 'Our bottom line will not be affected by goodwill,' Mr Chan added. Mr Pudwill said Techtronic's newly acquired units - Milwaukee Electric Tool Corp of the United States and Atlas Copco Electric Tools of Germany - were doing 'better than expected', but he did not provide figures. The two units would start contributing to Techtronic's earnings this year, he said. 'We should improve our profit margins.' Techtronic's net profit jumped 39.1 per cent to $938 million last year, while turnover rose 23.7 per cent to $16.3 billion.