TTI Reports Record Sales, Gross Margin and Profit in the First Half of 2014
HONG KONG, Aug. 20, 2014 /PRNewswire-FirstCall/ -- 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, gross margin and profit for the first half of 2014. Net profit attributable to shareholders reached US$ 136 million, a 15.9% increase over the first half of 2013. Basic earnings per share was US 7.45 cents, 15.9% higher than the same period last year. Sales rose by 10.2% over the six month period to US$ 2.25 billion.
TTI achieved double digit growth and continued delivering excellent financial performance. The Power Equipment segment delivered US$ 1,678 million, a 10.5% sales increase, and generated exceptional organic growth in the professional and DIY power tool businesses. The Floor Care and Appliance segment grew 9.3% to US$ 572 million in sales. The company's double digit sales growth is a result of a series of successful new product launches and highly effective, targeted geographic expansion.
Mr. Horst Pudwill, Chairman of TTI, said, "With our ongoing focus on generating organic growth, improving operating margins, and managing our robust balance sheet, we expect continued strong performance in the second half of 2014. We are excited about our momentum and are well-positioned to build on our record first half performance."
Mr. Joseph Galli, CEO of TTI, commented, "New product introductions, geographic expansion and a relentless focus on operational efficiency propelled our continued outstanding performance. A highlight of our strong first half result was the 100 basis point improvement in gross margin increasing from 34% last year to 35% this year, through new products introduction and aggressive productivity gains across our supply chain network."
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Profit attributable to Owners of the Company
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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, EMPIRE layout and measurement products, and HOOVER, ORECK , VAX and DIRT DEVIL Floor Care and Appliances.
TTI is one of the constituent stocks of the MSCI Hong Kong Index (Mid Cap security) under MSCI Global Standard Index. The Company is also one of the constituents on the Hang Seng Consumer Goods Index under the Hang Seng Composite Industry Index, Hang Seng Composite MidCap Index under the Hang Seng Composite Size Index, Hang Seng Global Composite Index, the FTSE Multinationals Index, classified as a Hong Kong Stock, FTSE Global All Cap Index, FTSE RAFI All-World 3000 Index and FTSE Hong Kong Index, classified as a Large Cap stock. For more information, please visit www.ttigroup.com.
MILWAUKEE, HOMELITE, EMPIRE, HOOVER, ORECK, VAX and DIRT DEVIL are trademarks of the TTI Group. AEG® is a registered trademark of AB Electrolux (publ) and is used by the TTI Group pursuant to a license granted by AB Electrolux (publ). RYOBI® is a registered trademark of Ryobi Limited and is used by the TTI Group pursuant to a license granted by Ryobi Limited.
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