The Toro Company has reported net earnings of $55.8 million on net sales of $601 million for its fiscal third quarter ended July 29, 2016. In the comparable fiscal 2015 period, the company delivered net earnings of $53.3 million on net sales of $609.6 million. In other words, even though Q3 sales decreased by 1.4%, net earnings jumped from 8.7% to 9.3%.
“In spite of challenging weather and currency conditions and the resulting impact on our revenues, we are pleased to deliver another solid quarter achieving record earnings. The strong performance within our professional businesses driven by new product introductions and outstanding execution by the team, fueled growth in that segment for the quarter,” said Michael J. Hoffman, Toro’s chairman and chief executive officer. “We see positive momentum in our golf equipment and irrigation businesses as we gain share in key markets. Additionally, our specialty construction and rental businesses are experiencing solid growth and are benefitting from new product introductions like the Dingo TX 1000 compact utility loader.
“With mixed consumer retail activity in the quarter, as was felt across the industry, we were encouraged by overall retail demand for our walk power and zero-turn riding mower products during the summer months,” Hoffman continued. “We performed well despite sluggish sales in certain regions that experienced challenging weather conditions.
“With the fourth quarter underway, we continue to see positive retail sales across our businesses. Additionally, in our snow and ice management businesses, we are well positioned with new innovative products as the preseason begins. I would like to take this opportunity to thank our worldwide employees and channel partners for their hard work and dedication. It is their tireless commitment to excellence that drives the company’s steady performance.”
For the first nine months of its fiscal year, Toro has now reported net earnings of $200.8 million on a net sales increase of 0.7% to $1.924 billion. In the comparable fiscal 2015 period, the company posted net earnings of $178 million on net sales of $1.910 billion.
Professional sales up, though landscape contractor demand down
Professional segment net sales for the third quarter totaled $427.8 million, up 1.4% from $422 million in the same period last year. For the first nine months, professional segment net sales were $1.362 billion, up 3.6% from the comparable fiscal 2015 period. Momentum generated in Toro’s golf equipment and irrigation businesses produced positive results for the quarter and the year. Additionally, continued demand for products such as Toro’s Dingo TX 1000 compact utility loader in both the rental and specialty construction businesses contributed to the growth for both periods. For the quarter, these gains were offset by lower channel demand for Toro’s landscape contractor equipment.
Residential sales down as worldwide demand for mowers shrinks
Residential segment net sales for the third quarter were $167.8 million, down 4.6% from $176 million in the same period last year. For the first nine months, residential segment net sales were $550.3 million, down 4.9% from the comparable fiscal 2015 period. The sales decline for the quarter was due primarily to reduced worldwide channel demand for walk power and riding mowers. The decrease was somewhat offset by higher shipments of snow products in the quarter. Decreased worldwide sales of zero-turn riding mowers and snow product contributed to the decline for the year.
