TTI Reports Record Sales, Gross Margin and Profit for 2014

HONG KONG, March 18 -- Hong Kong-based global power equipment and floor care company Techtronic Industries Co. Ltd. announced its results for the financial year ended December 31, 2014, achieving record sales, gross margin and profit. Shareholders' profits grew by 20.0% to US$300 million, with earnings per share increasing by 20.0% over 2013 to US 16.41 cents. Driven by new product innovations and growth in all geographic regions, sales rose by 10.5% over 2013 to a record US$4.8 billion.

TTI's largest business unit, Power Equipment, grew in sales by 13.0% to US$3.6 billion, accounting for 74.7% of total sales, and improved operating profit by 16.7% compared to 2013. The Floor Care and Appliance business grew 3.8% to US$1.2 billion in sales with operating profit expanding 15.4% from last year.

Gross profit margin improved for the sixth consecutive year to 35.2% from 34.2% in 2013 driven by the introduction of new products along with our global cost improvement initiatives in purchasing, supply chain, value engineering and manufacturing. 2014 earnings before interest and tax increased by 15.4% to US$351 million, with the margin improving by 30 basis points to 7.4%. The Board is recommending a final dividend of HK19.00 cents (approximately US2.45 cents) per share, which will result in a full-year dividend 32.6% higher than last year.

Mr. Horst Pudwill, Chairman of TTI, said, "TTI had an outstanding year in 2014, and I am delighted to report record sales, gross margin and profit. Our focus on product innovation and execution allows us to deliver consistently strong results, and will continue to drive our future success."

Mr. Joseph Galli, CEO of TTI, commented, "We enter 2015 with our strongest product lineup ever and are at the forefront of the shift to lithium cordless products across the industrial and consumer tool, outdoor products and floor care segments. Superior products, a disciplined operational approach, and a passionately committed team are central to our identity, and will continue to propel our growth."  

Highlights
		2014 US$ million	2013 US$ million	Changes
Turnover		4,753	4,300	+10.5%
Gross profit margin		35.2%	34.2%	+100 bpt
EBIT		351	304	+15.4%
Profit attributable to Owners of the Company		300	250	+20.0%
Basic earnings per share (US cents)		16.41	13.68	+20.0%
Dividend per share (approx. US cents)		4.05	3.06	+32.6%

•          Sales increased 10.5% to a record US$4.8 billion
•          Our high margin Milwaukee Industrial Tool business grew 22.2% globally, delivering a 3 year CAGR +20%
•          Growth in all geographic regions
•          Gross profit margin expanded 100 basis points
•          Net profit increased 20.0% for the year, delivering double digit growth for seven consecutive years
•          Efficient working capital management at 14.6% of sales

About TTI

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, Hang Seng Broad Consumption Index, Hang Seng HK 35, FTSE Multinationals Index, classified as a Hong Kong Stock, FTSE RAFI All-World 3000 Index and FTSE Hong Kong Index and classified as a Large Cap stock in FTSE Global All Cap Index. 

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.

Techtronic Industries Receives Home Depot's Partner of the Year Awards

HONG KONG, October 9, 2014 – Hong Kong-based global power equipment and floor care company Techtronic Industries Co. Ltd. (“TTI”/ The Group) received two coveted top awards at The Home Depot Annual Supplier Partnership Meeting in Atlanta, GA.

The Home Depot, the world’s largest home improvement retailer, presented Milwaukee Tool with the “Partner of the Year Award" for the Hardware Department. This award is representation of Milwaukee Tool’s excellence in collaboration, strategic vision and commitment to succeed in the market in 2014. Chosen among several of the largest companies in the home improvement industry, Milwaukee Tool is honored to receive the award for the second year in a row, and a third time in the last four years.

TTI Floor Care North America received “Partner of the Year” for 2014 and was selected for its outstanding service, innovation and design in the Appliance category. The company was recognized for a number of accomplishments including launching multiple, new floor care products such as the Hoover Air Cordless upright, the Hoover FloorMate hard floor cleaner, two new carpet washers and the entire Home Depot branded accessory lineup.

In addition, the Ryobi® One+ Airstrike Nailer and Stapler tools and the Hart Quick-Tatch interchangeable trowels and floats systems were honored by being finalists in the Top 10 Product Innovations.

Mr. Horst Pudwill, Chairman of TTI, said, “Our partnership with The Home Depot continues to strengthen. TTI is committed to providing world-class products and industry leading innovation.”

Mr. Joseph Galli, CEO of TTI, commented, “We are extremely proud receiving these outstanding awards and recognitions from The Home Depot for our efforts in 2014. The TTI organization is delivering a continuous flow of compelling and innovative new products and the teams are committed with relentless dedication to provide service excellence to drive The Home Depot success.”

TTI Reports Record Sales Gross Margin and Profit in the First Half of 2014

HONG KONG, Aug. 20 -- Hong Kong-based global power equipment and floor care company Techtronic Industries Co. Ltd. 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."

About TTI

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.

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.