I am pleased to report that TTI had an outstanding year in 2010. We delivered strong financial results across all geographic regions and business segments. We also made sweeping progress in deploying our long term strategic plan. TTI is now positioned for an even more exciting future!
Following are highlights demonstrating our progress.
TTI is a New Product Machine. We have invested in building a powerful, high speed product development system at TTI. Our product development capability allows us to bring a broad range of innovative, value added, margin enhancing products to market with demonstrable advantages over competitive offerings.
Our new product focus over the next three years will include:
Professional Lithium-ion Cordless Power Tools.
We will continue expanding the M18™ platform and the M12™ compact platform to fuel continued growth and market share gains in our MILWAUKEE® industrial tool business. Both the 18-volt and 12-volt platforms will feature the new MILWAUKEE® high performance Red Lithium™ technology which lasts longer and outperforms the competition.
Revolutionary, Interchangeable Head Cordless Tool System.
We are rolling out our unique AEG® multi-tool product range featuring a 12-volt lithium-ion cordless tool with many interchangeable heads. This system offers value and versatility to the professional and DIY’er.
RYOBI® ONE+ System® Cordless Tools.
Our large installed base of ONE+ System® cordless users represents a major opportunity for further expansion. We will roll out more RYOBI® ONE+ System® cordless power tools and outdoor products. Our ONE+ System® will continue to be the broadest DIY cordless range and will offer the user lithium-ion technology to upgrade the performance of all ONE+ System® products.
New Generation Floor Care.
Our Floor Care team is launching a series of new carpet washers and detergents that offer superior performance compared to the competition. Under our HOOVER®, VAX® and DIRT DEVIL® brands, we now market a completely re-engineered, next generation products in all key floor care categories.
In 2010, we grew our power tool accessory business by 16% worldwide. Our Accessory business will continue to grow with the introduction of many innovative new products. A great example of Accessory innovation is our highly successful MILWAUKEE® Shockwave Impact Duty™ line of industrial grade screwdriving products.
Developing new businesses organically is a core competency of TTI. This year we are rolling our yet another new business we have developed from scratch – our STOK™ Outdoor Grilling Systems. STOK™ grills feature a unique insert design which enhances the grilling experience for our customers.
Our new products will continue to drive sales growth, market share gains, and gross margin improvement in the future.
We delivered a strong 22% sales growth outside of North America in 2010. TTI is now positioned to continue to grow in Western Europe, Central Europe, the Middle East, Latin America, Australia, and throughout Asia. We have built talented local management teams and are developing close partnerships with key customers in these targeted markets. Geographic expansion will be a highlight of TTI’s future.
TTI’s global supply chain made encouraging strides in 2010. Our new PRC manufacturing complex is now fully operational and achieving impressive productivity gains. Our service levels to customers continue to be a key TTI competitive advantage. We formed a global purchasing organization in 2010 to improve our supplier management. We have deployed many productivity initiatives to offset the impact of commodity and wage inflation.
We are fortunate to have an outstanding management team in place at TTI. Our team of business unit presidents is comprised of industry veterans with superb track records and a passion for serving our customers. Our presidents have done an exceptional job of building their management teams. We believe the TTI management team we have in place worldwide is a major strength of our company.
Our Leadership Develop Program (LDP) is flourishing. We recruit high-potential graduates from a network of 50 universities. We train our newly recruited grads extensively. In 2010 alone, we promoted 78 LDP’s to higher level positions in product development, marketing, sales, supply chain management, and emerging market development. Our commitment to the LDP initiative will enable TTI to internally develop exceptional managers to further support our growth goals.
In closing, I want to thank our visionary Chairman, Horst Pudwill for his guidance and his support. Horst has challenged our company to be Number 1 in the markets we serve. His bold vision is evident in all facets of TTI. Our team is highly focused on delivering outstanding results and becoming Number 1 in our served markets.
Our future is exciting at TTI!
Chief Executive Officer