The Toro Company has reported net earnings of $39.3 million on a net sales increase of 2.6% to $486.4 million for its first quarter ended January 29, 2016.
“We are very encouraged by the positive start to the fiscal year, delivering record results for the first quarter,” said Michael J. Hoffman, Toro’s chairman and chief executive officer. “Our residential business benefitted from strong demand for zero-turn riding mowers. Strong sales of our landscape contractor equipment, increased demand for our specialty construction equipment and higher sales of golf irrigation products also contributed to the positive start to the fiscal year.”
Toro expects revenue growth for fiscal 2016 to be about 4%.
Professional segment net sales for the first quarter were $338.8 million, flat to $339.7 million in the same period last year. Strong sales of landscape contractor equipment contributed positively to the results; however, this momentum was negatively impacted by unfavorable foreign currency exchange rates. Demand for the Boss snow and ice management products was lower due to a lack of snowfall in the early winter months, which also affected the first quarter results.
Residential segment net sales for the first quarter were $144.3 million, up 7.1% from $134.7 million in the same period last year. This increase is primarily due to higher shipments of zero-turn riding mowers both domestically and internationally over the comparable period last fiscal year. Somewhat offsetting these increases were lower sales of snow product and walk power mowers compared to the same period last year.
