New Products, Boss Acquisition Help Drive Toro's Growth

Toro sees sales increase of 10.9% to record $826.2 million in second quarter ending May 1.

Toro’s second-quarter sales, ending May 1, were up 10.9% to $826.2 million. According to Michael Hoffman, chairman and CEO, “Good spring weather conditions helped generate robust retail sales during the quarter. Additionally, I’m proud of the dedication of and execution by our strong team that enabled us to deliver our record results.”

PROFESSIONAL SEGMENT

Professional segment net sales for the second quarter were up 4.6% from same period last year. Incremental sales of Toro’s recently acquired Boss snow and ice management products contributed to the growth for the quarter.

In addition, landscape maintenance equipment sales increased due to solid retail demand for Toro’s professional zero-turn riding and walk-behind mowing platforms and new turf management products, including the new Toro and Exmark spreader-sprayers.

Domestic golf sales also grew on strong channel and retail demand.

RESIDENTIAL SEGMENT

Residential segment net sales for the second quarter were up 27.3% from the same period last year. According to Hoffman, the sales performance benefited from strong retail demand for, and expanded retail placement of, Toro’s innovative product lineup that includes its new platform of residential zero-turn riding mowers and new all-wheel drive walk power mower.

FIRST SIX MONTHS, NEXT SIX MONTHS

For the first six months of its fiscal year (November through April), Toro reported a net sales increase of 9.2%.

Residential segment sales were up 12.5%. Professional segment sales were up 8.3%.

Looking forward to the second half of Toro’s fiscal year, Hoffman said, “As we continue through the key selling season, we are encouraged by the strong retail sales results that we are seeing across our businesses. We believe that we are well-positioned with our portfolio of innovative products to drive additional sales and increase our market share.

“In particular, we are excited by the successful launch of our Reelmaster 5010-H hybrid fairway mower for the golf market and early customer demand for our all-new Dingo TX 1000 compact utility loader for the landscape contractor and rental markets that will be released in our third quarter.

“With that said, we are mindful of the fact that Mother Nature delivered two consecutive favorable summer growing seasons in 2013 and 2014 and may not do so again this year. We also will have to manage the unfavorable foreign currency rate conditions that we expect will continue to pressure our international business. We will remain flexible to address both anticipated and unforeseen challenges and will keep a careful eye on both retail demand and field inventories. In addition, we will focus on the key things within our control that will help us achieve our Destination PRIME objectives, including investing in product innovation, delivering excellent customer service and executing in our markets.”

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