Brookfield-based Milwaukee Tool saw its revenue increase 8.7% in local currency during the first half of the year, even as its parent company saw an overall decline in sales for the first time in years. Hong Kong-based Techtronic Industries (or TTI), the parent company of Milwaukee Tool, saw revenue decline 2.2% in reported currency to
Brookfield-based Milwaukee Tool saw its revenue increase 8.7% in local currency during the first half of the year, even as its parent company saw an overall decline in sales for the first time in years.
Hong Kong-based Techtronic Industries (or TTI), the parent company of Milwaukee Tool, saw revenue decline 2.2% in reported currency to $6.88 billion for the first half of the year, a drop of 1% in local currency.
The first half decline in sales is a sharp departure from TTI’s recent results which have included year-over-year increases between 8.7% and 52% since 2019.
The Milwaukee Tool business has been a major driver of TTI’s growth, posting a 24% compound annual growth rate from 2010 to 2022 as its sales went from around $600 million in 2010 to about $8 billion in 2022. For 2023 to 2026, the company’s internal targets call for high single-digit to low double-digit annual sales increases.
Milwaukee Tool sales
[caption id="attachment_574122" align="aligncenter" width="1418"] Source: Milwaukee Tool investor presentation[/caption]
For the first half of 2023, the Milwaukee Tool business saw sales increase 7% in North America, 16% in Europe and 13% in the rest of the world.
“We believe this business is well positioned for sustained long term sales growth of high single digit to low double digit based on the shift from legacy power sources like petrol and corded to cordless, geographic expansion, deep vertical penetration, and new product introductions,” the company said in its earnings announcement.
Specific areas the company highlighted for continued growth included infrastructure, construction, power utilities, renewable energy, mining and transportation maintenance.
Milwaukee Tool's significant growth has been felt in the Milwaukee area with the company adding more employees, expanding its Brookfield headquarters and recently adding an office in downtown Milwaukee.
While Milwaukee Tool is particularly focused on professional trade users, sales at Ryobi, TTI’s consumer-focused power tool and equipment brand, “declined low double digit” during the first half of the year.
TTI noted its consumer businesses were down during the first half of the year “in part driven by inventory reduction initiatives within our network and our customers.”
For Ryobi, TTI curtailed production and worked to stimulate “POS sell through to drive inventory within our network, as well as our customer.” The company also took steps “to ensure the SG&A and structural overhead are the right size to support our growth outlook in the consumer arena.”
“We have maintained our MILWAUKEE strategic investment plans in new product development, in-store support, and geographic expansion, while prudently reducing non-strategic spend,” the company’s announcement said.
