- Record first quarter revenues, up 10.6%, driven by strong demand across both professional and residential businesses
- Net earnings per share up 22.6 percent to a record $0.65
- Company raises full-year revenue and EPS guidance, while also increasing investments for future growth with the recent acquisitions
- Early channel demand drives customer optimism
The Toro Company (NYSE: TTC) has reported net earnings of $19.9 million, or $0.65 per share, on net sales of $423.8 million for its fiscal first quarter ended February 3, 2012. In the comparable fiscal 2011 period, the company delivered net earnings of $17.3 million, or $0.53 per share, on net sales of $383.2 million.
“Retail sales of our golf and landscape contractor equipment have been very good year-to-date, and we have momentum heading into the spring selling season,” said Michael J. Hoffman, Toro’s chairman and chief executive officer. “Looking beyond our existing business, our most recently announced acquisition of the Astec underground products presents substantial opportunities in adjacent markets. As always, now begins the challenge of successfully integrating the acquisition into the company’s operations.”
Professional Segment Results
Professional segment net sales for the fiscal 2012 first quarter totaled $283.8 million, up 9.9% from the same period last year. Shipments of golf equipment were up worldwide as customers continue to invest in maintenance products for their courses. Micro-irrigation sales continue to be strong on growing acceptance amongst growers of drip irrigation technologies and our related increased capacities. The sales growth in the quarter was also aided by the addition of revenue from Unique Lighting Systems, which was acquired a year ago.
Residential Segment Results
Residential segment net sales for the fiscal 2012 first quarter totaled $137.6 million, up 11.6% from the same period last year. Consumers’ continued enthusiastic acceptance of Toro’s residential zero-turn riding product, and retailers’ desire to take walk power mower products earlier generated strong shipments of spring goods. Additionally, sales of Pope products in Australia grew significantly, as a result of improved weather conditions. The unseasonable winter weather reduced in-season demand for snow products, negatively impacting sales of snowthrowers and service parts.
Residential segment earnings for the fiscal 2012 first quarter totaled $12.6 million, up 10.9% from $11.4 million in the same period last year.
Business Outlook
“As we head into our primary selling season, customers are optimistic about the year ahead, based on early channel demand,” said Hoffman. “Mindful of potential swings in economic and weather patterns, we remain focused on being a flexible, high-quality supplier to our channel partners as we work with them to serve the needs of our end-user customers around the world. Once again this year, we will be bringing both professional and residential customers a number of exciting and innovative new products like the Toro TimeMaster 30” residential walk power mower.”
Factoring in the stronger sales growth from the first quarter and the acquisitions recently announced, the company now expects a revenue increase for fiscal 2012 of about 6-7%. The company also expects fiscal 2012 net earnings to be about $4.20 per share which includes a $0.10-$0.15 negative EPS impact for integration investments related to the acquisition of the Astec products. For the second quarter, the company expects to report net earnings of about $2.10 per share.
