By Kosaku Narioka


Techtronic Industries Co. said Wednesday that net profit declined 2.0% in 2022 due partly to higher finance costs and research and development expenses.

The Hong Kong-based power-tool maker said net profit fell to $1.08 billion from $1.10 billion in 2021.

While revenue rose 0.4% to $13.25 billion, increases in research and development costs and finance costs weighed on the bottom line. The floor-care-and-cleaning business posted a loss, while earnings grew from its power-equipment business.

Techtronic said it remained highly confident in its ability to continue driving gross margin improvement through the introduction of new products and manufacturing productivity.

The company's gross profit margin improved to 39.3% in 2022 from 38.8% in 2021.

Techtronic shares fell sharply in late February following a report from short seller Jehoshaphat Research that alleged the company had been inflating its profits. Techtronic denied the allegations.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

03-01-23 0511ET