Techtronic Industries Co. Ltd. (TTI) has announced its results for its financial year ended December 31, 2014. The company stated it achieved record sales, gross margin and profit.
Shareholder profits grew by 20% to $300 million, with earnings per share increasing by 20% over 2013 to $16.41 cents. The company stated that sales rose by 10.5% over 2013 to a record $4.8 billion, which it said was driven by new product innovations and growth in all geographic regions.
TTI’s floor care and appliance business grew 3.8% to $1.2 billion in sales, with operating profit expanding 15.4% from last year. Further, TTI’s largest business unit, power equipment, grew in sales by 13% to $3.6 billion, accounting for 74.7% of total sales, and improved operating profit by 16.7% compared to 2013.
The company’s gross profit margin improved for the sixth consecutive year to 35.2% from 34.2% in 2013 driven by what the company stated was an introduction of new products along with its global cost improvement initiatives in purchasing, supply chain, value engineering and manufacturing.
TTI’s 2014 earnings before interest and tax, increased by 15.4% to $351 million, with the margin improving by 30 basis points to 7.4%. In addition, the company’s board is recommending a final dividend of $2.45 cents per share, which will result in a full-year dividend 32.6% higher than last year.
Horst Pudwill, chairman of TTI, stated, “TTI had an outstanding year in 2014, and I am delighted to report record sales, gross margin and profit.”
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.”