Toro Reports Double-Digit Growth

Toro Reports Double-Digit Growth

The Toro Company has reported net earnings of $93.2 million on net sales of $1,690.4 million for its fiscal year ended October 31, 2010. In the fiscal 2009, the company delivered net earnings of $62.8 million on net sales of $1,523.4 million. This represents sales growth of 11%.

For the fourth quarter, Toro reported net earnings of $3.2 million on net sales of $337.3 million. In the comparable fiscal 2009 period, the company reported a net loss of $0.5 million, or $0.02 per share, on net sales $288.6 million.

"For Toro, it was a year marked by many successes and a return to change in the right direction," said Michael J. Hoffman, Toro's chairman and chief executive officer. "Investments we made during the downturn, along with renewed strength in our end markets, particularly worldwide golf and landscape contractor, have our revenues and profits growing once again. New product innovation was a key contributor to our growth, helping increase penetration in key categories. I am very appreciative of our team's performance and what they collectively achieved this year.

On another positive note, the company reached its strategic goal of driving 12-month average net working capital as a percentage of sales down "into the teens" in the second quarter, and made measurable progress throughout the year finishing just under 14% at fiscal year end. This marks an improvement of more than 50% from when the initiative was announced in early 2007 and Toro had roughly 30% of sales tied up in working capital. The company expects working capital levels to continue in the mid-teens.

Professional Segment Highlights

Professional segment net sales for fiscal 2010 totaled $1,085.5 million, up 12.4% from last year. Sales across all professional businesses increased for both the quarter and the year. Worldwide orders for golf equipment and precision irrigation systems accelerated due to increased capital spending, new golf projects in Asia, and the successful introduction of several product innovations. Overall shipments for landscape maintenance equipment saw solid growth on acceptance for new products, while both micro and residential and commercial irrigation sales were higher due to increased global demand for precision irrigation solutions. For the fourth quarter, professional segment net sales were $205.2 million, up 24.1 percent compared with the same period last year.

Residential Segment Highlights

Residential segment net sales for fiscal 2010 totaled $589.7 million, up 10.7% from last year. Riding products posted strong gains fueled by expanded placement for Toro's competitively priced TimeCutter zero-turn mowers and continued strong demand for TITAN zero-turn mowers. Snow shipments were higher, benefiting from lean field inventory levels entering the season and positive customer acceptance for Toro's new redesigned line of snow throwers. For the fourth quarter, residential segment net sales were $127.1 million, up 9.6% compared with the same period last year.

Business Outlook

"We are encouraged with the improving health of our business and prospects for the future," said Hoffman. "Our extensive lineup of innovative new products and enduring focus on the customer have our strong brands competitively positioned to capitalize on the recovery in our markets. We expect growth to come from a number of areas including international new golf development, the residential shift to zero-turn mowers, and continued momentum for precision irrigation solutions and landscape contractor equipment."

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