Brookfield-based Milwaukee Tool continued its sustained period of strong growth during the first half of 2017 with revenue up 20.1 percent in the first six months, according to financial results from parent company Techtronic Industries.
Milwaukee Tool has grown substantially over the last decade, from around $500 million in sales in the early 2000s to more than $2 billion for the first time in 2015. The company is targeting $5 billion in sales by 2020 and Hong Kong-based Techtronic Industries plans to increase Milwaukee Tool’s revenue 20 percent annually over the next five years.
“The effective execution of both distribution and end user conversion initiatives, introduction of innovative new products, and entry into large adjacent categories resulted in growth which outperformed the market,” TTI management said in its financial report.
As a whole, Techtronic Industries reported revenue of $2.88 billion during the first six months of 2017, up 7.3 percent from the same time last year. Net income improved 15.5 percent to $204 million and earnings improved 15.3 percent to 11 cents per diluted share.
“Our strategy of cordless leadership and relentless geographic expansion is yielding exciting results,” said Joseph Galli, TTI chief executive officer.
The company’s power equipment segment, which is dominated by Milwaukee Tool but also includes other brands like Ryobi, reported $2.47 billion in revenue for the period, up 11.9 percent over last year.
The segment’s profit was also up 25.5 percent to $232.1 million before interest, finance and tax costs.
“Our unrelenting focus on the strategic foundation of powerful brands, innovative products, operational excellence, and exceptional people will continue delivering growth and driving profitability in the second half and years to come,” said Horst Pudwill, TTI chairman.