Despite the drought, The Toro Company retail sales are up and even walk power mowers are selling better in 2012.
The Toro Company reported fiscal third quarter net earnings of $40.5 million on a net sales increase of 0.6% to $504.1 million. Toro's fiscal third quarter ended Aug. 3, 2012. In the comparable fiscal 2011 period, the company had earnings of $35.1 million on net sales of $501 million.
For the first nine months, Toro reported net earnings of $129.3 million on a net sales increase of 6.8% to $1,619.4 million. In the comparable fiscal 2011 period, it posted net earnings of $112.6 million on net sales of $1,515.9 million.
"In May, we anticipated a slowdown in the second half of our fiscal year due to a more challenging economic environment and the impact the early start to spring had on the business. What we didn't predict was the worst drought in over 50 years," said Toro Chairman and CEO Michael J. Hoffman. "We were still able to deliver favorable third quarter results in comparison to last year, but the combined impact of economic and weather conditions resulted in additional slowing of retail momentum and an increase in field inventory."
Hoffman added, "Despite the recent drought conditions, there continues to be many positives in our businesses. Our market positions remain strong, benefitting from a strong portfolio of new products. Year-to-date retail continues to be ahead of last year for many of our businesses including golf and micro irrigation. Even walk power mower sales are ahead of last year."
Toro now expects revenue growth for fiscal 2012 to be about 4% to 5%.
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