HONG KONG, April 16 /Xinhua-PRNewswire-FirstCall/ -- Techtronic Industries Co. Ltd. (“TTI” or the “Group”) (HKEx stock code: 669; ADR symbol: TTNDY) today announced record sales in 2007 of HK$24.8 billion, 13.53% over the prior year. This growth has been achieved in a challenging macroeconomic environment in the United States and with the benefits from the Group’s strategic acquisitions and restructuring. Additionally, the Company has delivered double digit revenue growth in the first quarter of 2008 and expects such growth to be maintained over the year.
During 2007, Hoover and Stiletto joined the powerful TTI brand portfolio. Strong growth momentum was maintained in Europe. New innovative products boosted the power tool business delivering low single digit growth in both professional and consumer segments. The Company exited non strategic business in the outdoor products category, resulting in an overall decline of sales in the power equipment division. Mr. Horst Pudwill, Chairman of TTI, said, “The highly successful launch of the innovative green Ryobi lithium-battery cordless power tools will continue to expand the reach of the Ryobi One+ System. Additionally, the outlook for our outdoor product business is very positive with the launch of significant new products in 2008.”
The Company delivered an improved gross margin for the core business in a difficult cost environment. With Hoover, the consolidated gross margin of 31.5% was comparable to 31.6% in the prior year. The introduction of new products, ongoing programs for cost containment, lean manufacturing, and improved operational efficiencies offset rising commodity prices and inflationary pressures.
The Strategic Repositioning Plan, announced in August 2007, is an important initiative for the future growth and profitability of the Company. HK$743 million of restructuring and transition costs were charged against 2007 earnings. These included the costs to close Hoover’s North Canton, Ohio manufacturing facility and relocate manufacturing to Texas, Mexico and China, plus the closure of two Milwaukee manufacturing facilities in North America. Anticipated annual savings are approximately HK$550 million (US$70 million) resulting from the restructuring activities when completed.
In 2007, the Floor Care business focused on the integration of Hoover. This integration has been successfully completed and positions TTI Floor Care to be a growing and profitable contributor to the TTI family of businesses. The Group is particularly encouraged that the Global Floor Care R&D Centre is up and running in the Ohio headquarters.
Commenting on the Group’s future plans, Mr. Pudwill said, “In 2008 we can expect the hard work from the integration of Hoover to begin translating into higher bottom line earnings. TTI can also look forward to new growth drivers as it becomes a much more sales and internationally focused organisation after the appointment of new management teams in Europe, Middle East, Canada, Latin America, and Australasia.”
Mr Joseph Galli Jr, Chief Executive Officer of TTI said, “We have worked hard over the past year to create a mix of TTI veterans and new top talent to deliver what I feel is the best structure and management team in the industry. I look forward to working with this exceptional leadership team in 2008 to further strengthen our position as a market leader. The Group has an immense potential to grow worldwide with its tremendous customers, powerful brands, great products and committed management.”
The text of the announcement and results presentation are available at http://www.ttigroup.com .
Investor Presentation Web Casting
Available at http://www.ttigroup.com from 7:00pm, April 17, 2008 (HK Time) for a month until May 16, 2008.
About TTI
Founded in 1985 and listed on the Stock Exchange of Hong Kong Limited in 1990, TTI is a world-class supplier of superior home improvement and construction tools with a powerful portfolio of trusted brands and a strong commitment to innovation and quality. The portfolio that TTI offers includes a full line of power equipment products, floorcare, laser and electronic products, employing approximately 23,500 people worldwide. TTI’s portfolio of global brands includes, among others, Milwaukee(R), AEG(R), Ryobi(R), Stiletto(R), Homelite(R), Royal(R), Dirt Devil(R), Regina(R), Vax(R) and Hoover(R).
TTI is one of the constituent stocks on the Hang Seng HK MidCap Index under the Hang Seng Composite Index and the FTSE All-World Hong Kong Index. For more information, please visit http://www.ttigroup.com .
Trademarks
All trademarks used are intellectual property of their respective owners and are protected under trademark law.
The use of the trademark Ryobi(R) is pursuant to a license granted by Ryobi Limited.
RIDGID(R) is a registered trademark of Ridgid, Inc., part of Emerson Professional Tools, a business of St. Louis-based Emerson (NYSE: EMR). The orange color used on these products and the combination of orange and grey are trademarks for RIDGID(R) brand power tools.
Sears(R), Craftsman(R) and Kenmore(R) brands are registered trademarks of Sears Brands, LLC.
AEG(R) is a registered trademark and its use is pursuant to a License granted by Licentia Patent-Verwaltungs-GmbH.
