Power Tools Billionaires Collect Rewards For Taking Brave Steps During a Pandemic.
Key Sentence:
- Techtronic Industries (TTI) took a big gamble at the pandemic’s start and continues to pay stops now very well.
Shares of the Hong Kong-based power tool maker rose 11.6 percent on Wednesday after announcing “extraordinary” earnings returns for the first half of 2021 the day before.
TTI’s revenue rose 52 percent to $6.4 billion in the six months to June. The company saw strong sales increase across all business areas and geographic markets, with sales in North America up 50.2%, Europe by 62.3%, and in other regions by 50%.
The company, known for its power tool brands Milwaukee and Ryobi and the iconic vacuum-cleaner brand Hoover, capitalized on the high demand for home improvement projects in the US and generated 78% of its sales in the US market in 2019 and more than 14% in Europe.
TTI’s biggest client, Home Depot, recently said the current shortage of new homes in the United States has helped add value to existing homes and raised home improvement costs. TTI’s profit grew faster than sales in the first half. As a result, the company topped market expectations with a net profit of $524 million, up 58% over the same period last year.
Horst Julius Pudville, co-founder and chairman of TTI, was featured on the cover of Forbes Asia magazine. He and Vice President Stefan Horst Pudville (his son) discussed the company’s strategic adjustment to the pandemic.
In a January interview, they said that their management team made a very bold decision in 2020. At a time when competitors let go of employees, TTI decided to invest more in its business. He has built an inventory to support his customers and has also invested in research and development. These steps are still bearing fruit today.
The stock increase got Pudwill Sr.’s net worth. To $8.8 billion, according to a list of real-time billionaires, while the net worth of co-founder Roy Chi Ping Chung is estimated at $1.3 billion. TTI was founded by the couple in 1985 and was listed on the Hong Kong Stock Exchange in 1990.
Today the company is individual of the world’s largest suppliers of cordless electrical equipment and floor treatment equipment. It employed more than 48,000 people worldwide at the end of last year. While most production takes place in the southern Chinese city of Dongguan, TTI is expanding into Vietnam, Mexico, Europe, and the United States.