The Toro Company has reported net earnings of $35.1 million on net sales of $501 million for its fiscal third quarter ended July 29, 2011. In the comparable fiscal 2010 period, the company reported net earnings of $33.4 million on net sales of $458.9 million.
For the first nine months, Toro reported net earnings of $112.6 million on net sales of $1,515.9 million. In the comparable fiscal 2010 period, the company posted net earnings of $90 million on net sales of $1,353.1 million.
"We delivered record sales over what was a good third quarter last year," said Michael J. Hoffman, Toro's chairman and chief executive officer. "Unfortunately, weather around the country slowed sales in our residential and landscape contractor businesses, and a disappointing walk power mower rework issue negatively impacted earnings for the quarter. Even so, demand for golf and grounds equipment around the world remained strong, and adoption of our micro irrigation solutions continued to grow, which helped drive strong quarterly results."
Professional Segment net sales for the third quarter totaled $346 million, up 8.8% from the prior year period. Worldwide shipments of golf equipment led segment growth on increased demand and strength of new products, such as Toro's Multi Pro 5800 sprayer and Reelmaster 7000 fairway mower. Micro irrigation products saw solid gains on a worldwide basis driven by added production capacity and growing acceptance for drip technologies, including Toro's patented Aqua-Traxx premium drip tape. Slower sales for landscape maintenance equipment resulting from significant drought in key markets offset some of the gains. For the first nine months, professional segment net sales were $1,022.5 million, up 16.2% from the comparable fiscal 2010 period.
Residential Segment net sales for the third quarter totaled $147.5 million, up 8.6% from the prior year period. Worldwide orders for snow products were up significantly for the quarter on strong preseason demand due to last year's healthy snowfalls that depleted field inventory levels. Somewhat offsetting these gains were lower sales of walk power mowers and riding products. For the first nine months, residential segment net sales were $480.4 million, up 3.8% from the comparable fiscal 2010 period.
Business Outlook. "Even with the external challenges of weather and the economy, along with the rework issue, we posted very solid results for the first nine months and remain committed to our revenue and EPS guidance for the year," said Hoffman. "Increased economic concern certainly isn't welcome news, but we remain encouraged about our end markets, competitive position, and innovation levels as we finish up our fiscal year. The summer selling season is winding down and we are positioned well for the upcoming snow season with a strong lineup and expanded placement."
