- TTI Annual Report 2010 - http://www.ttigroup.com/onlinereport/ar2010 -
Posted By admin On March 25, 2011 @ 9:15 am In | Comments Disabled
Our Power Equipment business comprising of power tools, outdoor products, and accessories delivered HK$18.6 billion in sales, an increase of 9.6% over the prior year. The business accounted for 70.5% of Group turnover in 2010. The business segment result before restructuring grew by 35.2%. This strong performance was driven by continued successful expansion of our lithium-ion cordless platforms, new ranges of consumer tools, innovative accessory programs, and growth momentum from new outdoor product categories.
In North America, Europe, and Australasia, strong gains were realized with double-digit sales growth. MILWAUKEE® gained market share in the global power tool market with its innovative best-in-class lithium-ion cordless tool and accessory range. This was a result of new product launches, increased distribution channel presence, and expanded geographic reach.
Our innovative, trade-specific application solutions and promotions further improved the market position of MILWAUKEE® M12™ in the compact cordless power tool category. Continued gains were produced by the M18™ lithium-ion product range driven by trade-channel focus, consistent and effective marketing programs, and new products. To further secure our leadership, MILWAUKEE® has launched its next generation of lithium-ion, Red Lithium™, which significantly enhances performance, durability, and value to further drive end-user productivity across the MILWAUKEE® cordless offering.
In North America, our business remained robust. RYOBI® maintained its market leadership in the US and Canadian consumer segments by expanding the cost effective and comprehensive ONE+ System® cordless power tool range for DIY home repairs and renovation. In the professional tool segment, RIDGID® launched a first-to-market, interchangeable tool head JobMax™ system of 12-volt lithium-ion cordless tools.
In Europe, product and marketing investments have continued to pay off in 2010 with double-digit growth across the business units. Professional AEG® cordless products have been key to delivering outstanding sales growth, driven by its new range of improved and more competitively positioned cordless and corded tools. We are encouraged by the introduction of the new AEG® multi-tool 12-volt cordless platform, which generated strong demand in late 2010. The multi-tool offers a range of job site solutions on a single power platform, thereby offering convenience, value and efficiency to users. Strong gains were made in adding new distribution, particularly in Nordic markets, and through newly launched products driving gains in targeted distribution channels.
New hyper-green color RYOBI® power tools were successfully introduced resulting in solid sales growth and improved retail listings, which positions the business for further growth. Our partnerships with leading DIY retailers were enhanced through aggressive new product introductions and intensive marketing support.
In Australasia, RYOBI® is a leading consumer brand and had another solid year led by new product introductions of corded and cordless tools in hyper-green, and new marketing initiatives.
AEG® professional tools successfully delivered growth. We have built a uniquely powerful retail partnership in the region where we closely coordinate aggressive product development and marketing to drive demand for both our brands.
Outdoor Products & Accessories exhibited growth with product innovation in new categories, particularly lithium-ion cordless tools and accessories under the RYOBI® and HOMELITE® brands.
In North America, our innovative, lightweight 4-cycle engine that powers RYOBI® trimmers and wheeled products with energy efficient performance generated strong end-user demand. Sales of RYOBI® cordless mowers, gas trimmers, and pressure washers all grew. RYOBI® ONE+ System® tools proved successful with consumers. Our expanded new product line-up supported by aggressive marketing helped drive sales growth.
HOMELITE® electric products in core categories of trimmers, mowers, and gas-powered chain saws targeted at the value segment of the market were strong performers. There was also encouraging growth in HOMELITE®’s gas powered generators in North America.
Article printed from TTI Annual Report 2010: http://www.ttigroup.com/onlinereport/ar2010
URL to article: http://www.ttigroup.com/onlinereport/ar2010/executive-summary/review-of-operations/power-equipment
URLs in this post:
 Power Equipment: http://www.ttigroup.com/onlinereport/ar2010/executive-summary/review-of-operations/power-equipment
 Floor Care and Appliances: http://www.ttigroup.com/onlinereport/ar2010/executive-summary/review-of-operations/floorcare-and-appliances
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