March 22 (Bloomberg) -- Techtronic Industries Co., maker of Ryobi power tools and Hoover vacuum cleaners, expects sales to double in five years aided by a rebound in the U.S. economy and the introduction of new products.
“We can double the company’s size over the next five years easily,” Chief executive officer Joseph Galli Jr. said in an interview today. The Hong Kong-based company whose brands also included Milwaukee power tools, plans to roll out 350 new products globally this year, hoping to tap an economic recovery in the U.S.
New residential construction in the U.S. continued to rise in February and permits for future construction climbed to the highest level in almost five years, signaling a rebound in the world’s largest economy. The company gets more than 70 percent of revenue from North America.
Techtronic yesterday reported a 32 percent jump in profit for the year ended in December. Net income rose to $201 million from $152 million a year ago. Sales increased 5 percent to $3.85 billion.
The company, whose competitors including Stanley Black & Decker Inc. and Japan’s Makita Corp., plans to expand into new markets such as Eastern Europe and the Middle East.
It expects sales to grow at a “strong single-digit” pace this year, while sales of its Milwaukee power equipment will deliver “strong double-digit” growth, Galli said.
Techtronic rose 4.1 percent to close at HK$18.42, while the benchmark Hang Seng Index lost 0.5 percent. The stock has climbed 91 percent in the last 12 months, outperforming the Hang Seng Index’s 5.8 percent gain.
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