Outdoor power equipment maker The Toro Company reported net earnings of $154.8 million and a net sales increase of 4.2%, to $2,041.4 million, for its fiscal year 2013. This is up from fiscal 2012's net earnings of $129.5 million on net sales of $1,958.7 million.
Toro's fiscal year ended Oct. 31, 2013.
"The Toro Company completed a record year with new highs for revenues, operating earnings and earnings per share," said Toro Chairman and CEO Michael J. Hoffman. "We are particularly excited to have crossed over the $2 billion revenue milestone for the first time in the company's history, a timely accomplishment as we head down the home stretch to our Centennial in July 2014. In addition, we remain focused on returning value to our shareholders, as demonstrated by the increase in both our annual dividend guideline and quarterly cash dividend."
Hoffman said the company's new products helped it defend and grow its market positioning in product segments such as residential ZTR lawn mowers, handheld blowers and trimmers, golf equipment and irrigation, and landscape maintenance.
Toro residential segment net sales in fiscal 2013 were $594.4 million, down 2.1% from last year. The decline was attributable to a challenging preseason sales environment for snow equipment early in fiscal 2013, as well as unfavorable spring weather at the start of the key selling season.
Sales were boosted by increased shipments of domestic residential riding equipment--the company sees consumers continuing to transition to zero turn radius mowers. The company also saw higher demand for its handheld trimmer and blower products in the U.S., as well as Pope-brand irrigation products in Australia.
Residential segment earnings in fiscal 2013 were $62 million, up 7.2% from fiscal 2012.
Professional segment net sales in fiscal 2013 were $1,425.3 million, up 7.2% over fiscal 2012. Sales of landscape maintenance equipment was up, with strong retail demand for the company's zero turn radius mowers and successful new product introductions.
Professional segment earnings in fiscal 2013 were $254.4 million, up 9.6% from fiscal 2012.
Next year will be Toro's Centennial year. In fiscal 2014, the company expects revenues to grow 4-5%. Hoffman pointed out that weather is an uncontrollable factor, and unfavorable weather can have a large impact on the sales of residential and professional outdoor power equipment.
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