Techtronic Industries (0669) said its first-half net profit declined by 17.7 percent from the prior year to US$476 million (HK$3.70 billion) but kept the interim dividend unchanged at 12.2 US cents.
The Hong Kong-based power tools maker's sales dipped by 2.2 percent, or 1 percent in local currencies, to US$6.88 billion during the period. Among them, revenue from North America dropped by 4.2 percent to US$5.2 billion while Europe rose by 7.3 percent to US$1.15 billion, a filing showed yesterday.
The gross profit margin expanded for a 15th consecutive first half to 39.3 percent, up by 22 basis points from last year, due to mix improvements and the high margin aftermarket battery business.
Inventory was reduced by US$504 million from the end of last year, or US$651 million, from 12 months ago.
Techtronic said investment plans in its consumer businesses, which saw sales down, remain curtailed to align with current market conditions.
And it has managed down selling, general, and administrative expenses and structural overhead to support the lower near-term growth outlook.
Still, Techtronic Industries is "encouraged" for the second half of the year in its ability to drive positive sales growth and free cash generation.
