Techtronic Industries (TTI), which owns the Hoover, Oreck and Dirt Devil floor care appliance brand portfolio, reported double-digit growth in revenue, gross profit and net income in the first half of 2015. In the first half, the company’s revenue was a record $2.5 billion, a 10% increase from the same period last year.
The company’s gross profit margins also improved, increasing by 10%, or 14.4% when excluding the effect of foreign currency exchange. The company’s EBIT increased by 12.1% and its net profit, attributable to shareholders, is reported to be $159 million, which it said is a growth of 16.5% from last year’s first half profit of $136 million. Basic earnings per share increased 16.4% to 8.67 cents.
Despite TTI’s overall financial gains, it reported that the revenue of its floor care and appliance division was down by 9.7%, to $516 million, for the first half of 2015. This division’s revenue accounts for 20.9% of TTI’s overall intake. The company’s power equipment segment, comprising 79.1% of the group’s revenue, generated double-digit sales growth of 16.7%.
The company equated this drop to a mandated European Union (EU) Energy Labeling Directive and the strategic exit of its low margin OEM businesses. However, it did note that it witnessed an uptick in its European cordless vacuum sales.
For the North American floor care business, TTI said it exceeded overall industry growth and of its three floor care brands, Hoover was the driving cause of this at key mass retailers as well as with commercial cleaning partners using the Hoover and Oreck commercial brands. The company cited the expansion of its Hoover cordless cleaning line of products, powered by TTI’s lithium cordless technology, as a key driving factor.
TTI also reported that its Oreck brand of vacuums generated double-digit growth, due to continued partner store expansion and new product introductions.
Joseph Galli, CEO of TTI, stated, “Our focus on driving the gross margin to new levels has yielded the seventh consecutive reporting period of gross margin improvement. The group’s strong first half results reflect the continued success of our strategy to bring to market exciting new products with cutting-edge technology such as our industry-leading lithium cordless platforms, powerful brands built on in-depth understanding of customer needs, loyalty from end-users, and consistent commitment to continued improvements in operational efficiency.”