Toro closed the books on its 2016 fiscal year at the end of October. Net sales for the year were up just 0.1%, largely due to a slightly slower fourth quarter (Aug/Sep/Oct) and soft snowthrower demand.
Overall net sales for the fourth quarter were down 2.6%. Mild in-season winter conditions (last winter) and soft pre-season snowthrower demand this year helped contribute to a year where residential segment sales were down 7.8%. Q4 sales specifically were down 19.2%.
On the other hand, Toro’s professional segment business has been quite strong. Net sales were up 4% for the year. The company reports strong demand for golf and irrigation products, along with continued momentum with landscape contractors, rental centers and specialty construction customers. New products have been well-received. In particular, Toro’s Titan HD zero-turn mower and Dingo TX 1000 compact utility loader have gone over well, the company says.
Richard M. Olson, Toro’s president and chief executive officer, has this to say: “With fiscal 2017 already underway, we remain committed to delivering innovative products and serving customers across our businesses. As anticipated, pre-season demand for snow and ice management products was affected by the lack of snowfall last winter. However, mild autumn conditions extended the growing season in several areas, which benefitted our turf maintenance businesses.
“Recent weather patterns appear promising, and we are encouraged by the resulting retail activity. We will pay careful attention to inventory levels while ensuring we remain responsive to customer demand. As we embark on the last year of our Destination Prime employee initiative, we are committed to growth and profitability, while maintaining focus on working capital management. As always, we recognize that unfavorable weather conditions could negatively impact demand throughout the year, but we will maintain a steady approach in executing on our initiatives in the months ahead.”
