Toro’s Q2 sales were up 12 percent from the same time a year ago. Increased demand from professional users has largely fueled the growth.
Net sales for the second quarter ending April 29 were $631.6 million, as compared to $562.8 million for the second quarter in 2010.
For the first six months of this fiscal year, Toro reported net sales of $1.01 billion. In the comparable fiscal 2010 period, the company posted net sales of $894.2 million. That’s a 13 percent increase.
"We are very pleased with our second quarter performance as our execution serving the professional markets led to significant revenue and earnings growth, putting Toro on an early trajectory towards our Destination 2014 organic growth and profitability goals," said Michael J. Hoffman, Toro's chairman and chief executive officer. "We are especially excited about the golf business. Customers are choosing Toro's innovative products to replace aging equipment and irrigation systems, and to support new golf development projects around the world. As for our residential business, the late start to spring delayed retail sales resulting in us carrying more inventory; however, we expect demand to return with the recent, warmer weather."
Professional. Professional segment net sales for the second quarter totaled $418.3 million, up 19.7 percent from the prior year period. Worldwide orders for golf equipment and irrigation systems were up on improved market conditions, successful product introductions, and new course development around the world – particularly in Asia. Shipments of landscape maintenance equipment were higher on strength of new products, even with a slow start to spring that delayed some purchases. Other contributors to growth in the quarter included strong global sales for micro irrigation products on increased demand and added capacity, along with a rebound in the rental business. For the first six months, professional segment net sales were $676.6 million, up 20.3 percent from the comparable fiscal 2010 period.
Residential. Residential segment net sales for the second quarter totaled $209.6 million, down slightly from the prior year period. Cool, wet weather dampened sales for walk power mowers. These declines were somewhat offset by strong acceptance for Toro's new line of innovative zero turn mowers, with shipments up significantly for the quarter. For the first six months, residential segment net sales were $332.9 million, up 1.9 percent from the comparable fiscal 2010 period.
Business Outlook. "Economic trends in our markets remain positive; however, weather and commodities are proving to be more challenging this year," said Hoffman. "While uncertain how the delayed start to spring will play out across our markets, we are encouraged by the success of our innovative new products and execution in the marketplace. Given our strong performance to date, we are increasing our full-year revenue and earnings outlook."
