Outdoor power equipment maker The Toro Company reported record fiscal second quarter net earnings of U.S. $70.1 million, or $1.56 per diluted share, compared to $62 million, or $1.33 per diluted share in the prior-year period.
The company also reported record net sales of $659 million for the quarter ended May 5, 2006, compared to net sales of $628.4 million in the same period last year.
For the 6 months ended May 5, 2006, Toro reported record net earnings of $84.4 million, or $1.87 per diluted share, compared to $73.1 million, or $1.55 per diluted share in 2005. Net sales for the 6-month period were a record $1.02 billion, compared to $975.4 million in 2005.
Michael J. Hoffman, Toro Company chairman and CEO, said that growth in world-wide professional segment sales helped offset slower sales in the residential segment, which were particularly strong last year due to early season shipments to retailers. "With our continued focus on improving operating effectiveness and profitability, we increased our second quarter earnings despite challenges posed by lower residential segment volume and increasing commodity costs," said Hoffman.
Toro's professional segment sales for quarter increased 12.9 percent to $439.1 million. Professional segment earnings for the quarter totaled $104.2 million, up 23.1 percent from $84.6 million in the fiscal 2005 second quarter. For the year to date, professional segment earnings totaled $145.8 million compared with earnings of $123.5 million in 2005. Net sales increased 9.2-percent to $692.7 million, compared to $634.3 million in 2005.
The company said residential segment sales for quarter totaled $210.3 million, down 7.7 percent compared with the fiscal 2005 second quarter. Segment earnings for quarter totaled $18.1 million, compared with $29 million in the fiscal 2005 second quarter. For the year to date, residential segment earnings totaled $23.3 million, compared with earnings of $33.4 million. Net sales were $318.5 million, compared to $323.6 million in 2005.
Toro reaffirmed its full-year guidance for sales growth of approximately 8 percent for fiscal 2006, assuming the continuation of seasonally normal weather patterns. Given the company's first half performance and current expectations for second half results, Toro now expects fiscal 2006 earnings per share to increase 14 percent to 17 percent.
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