2020-04-08 09:02Financial Performance - The company achieved a record revenue of $7,667 million in 2019, marking a 9.2% increase from $7,021 million in 2018[8] - The company's net profit attributable to shareholders rose to $615 million, an increase of 11.3% compared to $552 million in 2018[8] - Basic earnings per share increased to 33.67 cents, reflecting an 11.6% growth year-over-year[11] - The company's revenue reached $7.7 billion, an increase of 9.2% compared to 2018, with a local currency growth of 10.7%[22] - The electric tools business accounted for 88.6% of total sales, growing 13.0% to $6.8 billion, driven by Milwaukee tools which saw a local currency growth of 21.7%[22] - The company reported a 10.9% increase in earnings before interest and taxes to $673 million, with an EBIT margin rising by 10 basis points to 8.8%[24] - Shareholder profit rose by 11.3% to $615 million, with earnings per share increasing by 11.6% to $0.3367[24] - The floor care and equipment business accounted for 11.4% of Techtronic Industries' total sales, generating an operating profit of $10 million, an increase of 12.8% compared to 2018[134] Gross Margin and Profitability - Gross margin improved to 37.7% in 2019, up from 37.2% in 2018, representing a 50 basis points increase[15] - Gross profit margin increased from 37.2% in 2018 to 37.7% in 2019, marking eleven consecutive years of growth[23] - Total operating expenses for the year were $2.23 billion, representing 29.1% of revenue, compared to 28.7% in 2018[141] Dividends and Shareholder Returns - The company declared a final dividend of 13.26 cents per share, which is a 17.0% increase from 11.33 cents in 2018[11] - The total dividend for the year is expected to be HKD 1.03 (approximately USD 0.1326), an increase from HKD 0.88 (approximately USD 0.1133) in the previous year[146] - The company has repurchased a total of 2,350,000 shares, with expenditures amounting to $12,644,000 included in retained earnings[144] Operational Strategy and Growth - The company plans to continue focusing on strong brands, innovative products, leading technology, and operational excellence in 2020[21] - The company has a strong product portfolio and is expanding distribution channels in multiple countries[6] - The company plans to expand its global manufacturing operations, particularly in Vietnam, to enhance service levels and product quality[24] - The company is expanding its production capabilities in Vietnam and Mexico, and relocating carpet cleaning product manufacturing to the United States, indicating a strategy for sustained growth[28] - The company is experiencing significant growth opportunities in Europe, Canada, and Australia, with its main brands outperforming competitors in these markets[30] Innovation and Product Development - The introduction of new zero-emission battery products positions the company as a leader in the electric tools and light construction equipment sectors[25] - The company has developed a comprehensive M18 lithium battery product line and is expanding into woodworking, engineering renovation, transportation, and distribution sectors to tap into vertical growth markets[30] - The company has established a powerful and fast innovation product development system to continuously supply users with superior products[53] - The Milwaukee MX FUEL system redefines light equipment performance while addressing issues related to emissions, noise, and maintenance associated with gas-powered tools[43] Corporate Governance and Management - The company has a strong management team with extensive experience in international trade and operations, including leaders with backgrounds from Black & Decker and Amazon[151] - The board includes independent non-executive directors with diverse expertise, enhancing governance and strategic oversight[158] - The company emphasizes the importance of corporate governance and compliance, ensuring alignment with best practices in the industry[161] - The board has established three committees: the audit committee, nomination committee, and remuneration committee, each with defined responsibilities[175] Sustainability and Social Responsibility - The company is committed to sustainable business practices, emphasizing recycling, product refurbishment, and reduced packaging as part of its environmental, social, and governance strategy[33] - The company has a commitment to sustainable development, focusing on environmental management and community engagement[200] - The company has outlined its supply chain management strategies, emphasizing environmental and social responsibilities[199]