Rewards for Bold Moves during the Pandemic Power Tools Billionaires Reap Rewards
In the early days of the pandemic, Techtronic industry (TTI) took a big step to pay off well.
Even after announcing a day earlier the “extraordinary” results of the initials in the first half of 2021, shares of the Hong Kong-based tool manufacturer increased 11.6 percent on Monday.
In the six months ended June, TTI sales increased by 52 percent to $6.4 billion. Sales in North America grew by 50,2%, Europe jumped by 62,3% and others rose by 50%, with the company growing by 62,3% throughout its business units and geographic markets.
The company, most known for its Milwaukee and Ryobi power tool brands and the iconic Hoover vacuum cleaner brand, has strong demand in the USA for home improvements. In 2019, TTI accounted for 78% of its sales in the U.S. and just over 14% in Europe.
Home Depot, TTI’s leading customer, recently reported that the current lack of new homes in the US helped boost current domestic values that stimulate domestic spending.
In the first half, TTI’s sales grew even faster. The company achieved a net profit of $524 million that was 58 percent higher than last year, thus fulfilling market expectations.
Horst The Cofounder and President of TTI, Julius Pudwill, was featured in a cover story for Forbes Asia magazine, discussing the strategic adjustments to the pandemic between him and the Vice President Stephan Horst Pudwill (his son).
During a January interview, they said their management team had made many audacious decisions in 2020. TTI decided to invest in its enterprise at a time when its competitors were flooding people. It has developed inventories to support its customers and invested in research and development. And today, these movements pay off well.
Over the past three years the company’s equity has almost quadrupled and has a market value of around 38 billion dollars. According to the Real-Time Billionaires list, the increase in the share capital of Pudwill rose to 8.8 billion dollars, while the fortune of Roy Chi Ping Chung is estimated to be 1,3 billion dollars. TTI was founded in 1985 by the pair and was listed on the Hong Kong Börse in 1990.
It has become a global supplier of wireless electricity tools and floor care equipment today. At the end of last year, there were over 48,000 employees worldwide. While most of its production operates in the southern Chinese city of Dongguan, TTI’s operations in Vietnam, Mexico, Europe and the United States have expanded.