TTI Earnings Rise, Floor Care Division Sales Decline In 2015

Driven by growth in its power equipment segment, Techtronic Industries (TTI), which owns the Hoover, Oreck and Dirt Devil floor care appliance brand portfolio, reported that sales for the financial year ended December 31, 2015 rose by 6% over 2014 to a record $5 billion.

Joseph Galli, CEO of TTI, said, "We believe a powerful key to our success at TTI is a consistent, disciplined adherence to our strategic direction. 2015 was an amazing year at TTI in which we delivered more new break-through products and continued to advance our geographic expansion. As we look ahead, we are thrilled to share that we have never had a stronger team, more exciting products and as vast opportunities."  

Gross profit margin improved for the seventh consecutive year to 35.7% from 35.2% in 2014 with the introduction of new products along with its global cost improvement initiatives in purchasing, supply chain, value engineering and manufacturing, the company said. In 2015, earnings before interest and tax increased by 14% to $400 million, with the margin improving to 7.9%. Net profit rose 18% to $354 million from $300 million last year. 

The floor care and appliance business unit saw sales for the year decline 11.2% over 2014 to $1 billion. The floor care and appliance business unit, consistent with its strategy in the first half of the year, continued the planned exit of certain non-strategic lower margin businesses and categories, the company said. Looking ahead, the company said it is strategically positioned with its focus on cordless and commercial cleaning, leveraging its brand portfolio.

TTI's largest business unit, power equipment, saw sales growth of 11.8% to $4 billion, accounting for 78.8% of total sales, and an increase in operating profit by 29.7% compared to 2014.

Horst Pudwill, chairman, TTI, said, "TTI had a tremendous year in 2015 delivering record sales, gross margin and profit. Our laser focus on product innovation and execution allows us to deliver consistently strong results. As we reflect on thirty years of accomplishment, we are determined to continue our remarkable growth and lead the industry's cordless revolution forward."