This story appears in the February/March 2023 issue of Forbes Asia. Subscribe to Forbes Asia
Jocelyn Tam for Forbes Asia
This story is part of Forbes’ coverage of Hong Kong’s Richest 2023. See the full list here.
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Horst Julius Pudwill, cofounder and chairman of power tools and floor-care products maker Techtronic Industries, saw his wealth decline 19% to $6 billion in the past year despite earnings growth. In the first half of 2022, the company’s sales and net profit climbed about 10% each from a year earlier to $7 billion and $578 million, respectively. But a weaker U.S. economy weighed on investor sentiment—Techtronic gets 77% of its revenue from North America and counts U.S. home improvement retailer Home Depot as its biggest customer. Less disposable income and the Federal Reserve’s steep interest-rate hikes to curb inflation dampened consumer demand and drove down new home sales in 2022 to the lowest in four years. The company’s Hong Kong-listed shares dropped over 20% from a year ago.
With a slate of new products, market leader Techtronic saw an increase in power equipment sales early last year, including its flagship Milwaukee brand of power tools and Ryobi outdoor products that account for over 90% of total revenue. Demand for its floor-care products like vacuum cleaners, however, waned with more people returning to offices as the pandemic ebbed. Pudwill, a former engineer with Volkswagen, moved to Hong Kong in the mid-1970s and cofounded Techtronic in 1985 with Roy Chi Ping Chung, who dropped off the list this year. Pudwill, 78, owns a 21% stake in the company where his son, Stephan, is vice chairman.