Toro’s second-quarter (ending May 4) net sales of $691.5 million were up 9% from last year, while net earnings climbed 14% to $68.8 million.
“We delivered another quarter of strong sales and earnings growth, accelerated by our new product portfolio and the early start to spring and favorable weather conditions across much of the U.S.,” said Michael J. Hoffman, Toro’s chairman and chief executive officer. “Turf is growing—driving sales of residential mowing products, and golfers are playing more golf—contributing to revenue for golf courses and improving their ability to invest in new products. Our golf, landscape and grounds, and micro-irrigation businesses in the U.S. have had a very strong first six months, which has offset challenges in our international business created by the economic issues in Europe.
The company now expects revenue growth for fiscal 2012 to be about 7-8% and net earnings to be about $4.30 per share, which includes the $0.15 to $0.20 negative earnings per share impact for investments related to the Astec and Stone product line acquisitions.
“While a portion of our results was the benefit of an accelerated spring, we are hopeful the early start will extend the selling season and drive incremental sales,” Hoffman said. “Our product lineup is strong, our core businesses are well positioned, and our investments in light construction, hardscapes and rental products will contribute to future growth. We are raising our outlook for the year, even against a backdrop of a challenging sales environment in Europe, and an anticipated soft snowthrower pre-season ahead of us.”
Professional Segment Results. Net sales for the second quarter totaled $455.9 million, up 9% from the prior year period.
- Domestic sales of golf and grounds equipment increased on improved market conditions, and customers replacing aging equipment with new innovative products.
- Shipments of landscape maintenance equipment were higher on improved contractor confidence and strength of new products.
- Micro-irrigation sales around the world increased on continued demand for precision irrigation solutions for agriculture.
- International sales were down slightly in the quarter, primarily from a slowdown in demand for golf and grounds equipment in Europe.
Residential Segment Results. Net sales for the second quarter totaled $231.9 million, up 10.6% from the prior year period.
- Favorable weather accelerated the start of the spring goods selling season driving strong pre-season demand.
- Shipments of walk power mowers were up on improved weather and new product introductions.
Toro also announced that its Board of Directors has declared a two-for-one split of the company’s common stock, which will be effected in the form of a 100% stock dividend. The stock dividend will be distributed June 29 to shareholders of record as of June 15.
