Techtronic Industries (TTI) saw revenue rise 8.8% to US $5.5 billion in 2016, a record for the company.
TTI owns Milwaukee, AEG and Ryobi in the power tools, accessories and hand tools category. Ryobi delivered double digit growth and overall net profit increased 15.4% for the year, representing double digit growth for the ninth consecutive year.
Gross profit margin improved 35.7% to 36.2% thanks to new products, mix, operating leverage and productivity gains.
Power equipment bonanza
The Power Equipment side of the business had an “exceptional year” with sales growth of 12.6% to US$4.5 billion, accounting for 81.6% of total sales with an increase in operating profit of 13.4% to US$430 million.
Mr. Horst Pudwill, Chairman of TTI, said: “I am delighted to announce that 2016 was our seventh consecutive year of record sales and ninth consecutive year of record profit. We achieved this with a disciplined focus on our four key strategic drivers of powerful brands, innovative products, exceptional people and operational excellence which enabled us to further drive our financial performance and build on our business milestones.”
Mr. Joseph Galli, CEO of TTI, added: “Our new product flow will continue and I am extremely excited about the innovation that we have coming which will feed into our product pipeline well into the future.We will continue exploring new strategic initiatives while at the same time expanding our core business into new categories and geographies.”
According to Milwaukee Business News, Milwaukee Tool sales rise 21% with plans to top $5 billion in sales by 2020.