Horst Julius Pudwill and his son Stephan Horst Pudwill (right), he is holding a set of lithium ion… [+] batteries. Its Milwaukee brand (displayed in the company’s showroom) pioneered the use of lithium-ion batteries to power cordless tools.
Techtronic Industries (TTI) made a big bet at the beginning of the pandemic and continues to reap handsome returns.
The Hong Kong-based power tool manufacturer’s stock price soared 11.6% on Wednesday, after announcing “extraordinary” profit results for the first half of 2021 the day before.
In the six months ending in June, TTI’s revenue increased by 52% to US$6.4 billion. The company’s sales in all business units and geographic markets have achieved strong growth: North American sales increased by 50.2%, Europe increased by 62.3%, and other regions increased by 50%.
The company is known for its Milwaukee and Ryobi branded power tools and the iconic Hoover vacuum cleaner brand and is benefiting from strong U.S. demand for home improvement projects. In 2019, 78% of TTI’s revenue came from the U.S. market and slightly more than 14% came from Europe .
TTI’s largest customer, Home Depot, recently stated that the current shortage of new homes in the United States will help increase the value of existing homes, thereby stimulating home renovation spending.
TTI’s profit growth rate even exceeded the sales in the first half of the year. The company achieved a net profit of US$524 million, exceeding market expectations and an increase of 58% over the same period last year.
Horst Julius Pudwill, co-founder and chairman of TTI, appeared on the cover story of Forbes Asia. He and Vice Chairman Stephan Horst Pudwill (his son) discussed the company’s strategic adjustments to the pandemic.
They stated in an interview in January that their management team made many bold decisions in 2020. At a time when its competitors are laying off employees, TTI chose to further invest in its business. It builds inventory to support its customers and invests in research and development. Today, these measures have paid off handsomely.
The company’s stock has almost quadrupled in the past three years, with a market value of approximately US$38 billion. According to the real-time list of billionaires, the stock price surge has raised the net worth of Pudwill veterans to US$8.8 billion, while the wealth of another co-founder Roy Chi Ping Chung is estimated to be US$1.3 billion. TTI was founded by the duo in 1985 and was listed on the Hong Kong Stock Exchange in 1990.
Today, the company has developed into one of the world’s largest suppliers of cordless power tools and floor care equipment. As of the end of last year, it had more than 48,000 employees worldwide. Although most of its manufacturing is in the southern Chinese city of Dongguan, TTI has been expanding its business in Vietnam, Mexico, Europe and the United States
I am a senior editor based in Hong Kong. For nearly 14 years, I have been reporting on the richest people in Asia. I’m what the old folks at Forbes said
I am a senior editor based in Hong Kong. For nearly 14 years, I have been reporting on the richest people in Asia. I’m what Forbes’ old predecessors call “the boomerang”, which means this is the second time I’ve worked for this magazine with a history of more than 100 years. After gaining some experience as an editor at Bloomberg, I returned to Forbes. Before entering the press, I worked at the British Consulate in Hong Kong for about 10 years.