Hong Kong-based power equipment and floor care company Techtronic Industries Co. Ltd. (HK: 669) announced an 11% increase in net profits for the financial year ended December 31, 2019.
Revenues increased over 9% over the previous year to $7.7 billion, according to the company. Gross margin expanded from 37.2% in 2018 to 37.7% in 2019 driven by a flow of new products, mix management, productivity gains and volume leverage. Shareholder's profits rose 11.3% to $615 million, with earnings per share increased 11.6% over 2018 to 33.67 cents.
"We see unlimited growth opportunity through our cordless leadership strategy in our core professional trade, industrial and DIY markets," said Joseph Galli, CEO of the company. "Our cordless technology and leading battery platforms generate sustainable competitive advantages. TTI is embarking on the next decade of industry leading performance and cordless leadership."
Techtronic Industries is a leader in cordless technology spanning Power Tools, Outdoor Power Equipment, Floor Care Appliances and Accessories for the consumer, professional, and industrial users in the home, construction, maintenance, industrial and infrastructure industries. Its portfolio includes Milwaukee, Aeg and Ryobi power tools, accessories and hand tools, Ryobi and Homelite outdoor products.
Over the past year, the company said its Milwaukee tool business delivered another year of great performance, growing 21.7% in local currency while the Ryobi cordless business increased sales by double digits.
To support the rapid growth, the company has made investments to expand its global manufacturing footprint in Asia, Mexico and the USA. The manufacturing operation in Vietnam has now become an integral part of TTI's global manufacturing strategy.