Outdoor power equipment maker The Toro Company reported record net earnings of $114.1 million, or $2.45 per diluted share, on record net sales of $1.8 billion for the fiscal year ended Oct. 31, 2005. In fiscal 2004, the company reported net earnings of $102.7 million, or $2.02 per diluted share, on net sales of $1.6 billion.
For the fiscal 2005 fourth quarter ended Oct. 31, 2005 Toro reported net earnings of $6.6 million, or $0.14 per diluted share, on net sales of $337.1 million compared with net earnings of $6.9 million, or $0.14 per diluted share, on net sales of $336.9 million in the fiscal 2004 fourth quarter.
Michael J. Hoffman, president and CEO of Toro, noted that double-digit growth in sales for the professional segment and international business overall helped offset slower sales in the domestic residential segment.
"Including contributions from the acquisition of Hayter, Ltd., international sales increased 29.1 percent over 2004 and accounted for nearly 25 percent of total revenues, up from 21 percent in 2004. In particular, international sales of residential products increased more than 50 percent," said Hoffman. "The results from accelerating our international growth provided better balance in our business that, in 2005, helped mitigate the effect of unfavorable weather primarily impacting our domestic residential segment."
Toro's professional segment fiscal year net sales totaled $1,145.4 million, up 11.3 percent compared with 2004. Fourth quarter segment sales increased 7.1 percent. For the fiscal year, professional segment earnings totaled $207.4 million an increase of 19.8 percent compared with fiscal 2004. Segment earnings for the quarter totaled $24.0 million compared to $18.6 million in the corresponding quarter last year.
The company's residential fiscal year segment net sales totaled $583.3 million, up 5.2 percent from fiscal 2004. Residential segment sales for the fiscal 2005 fourth quarter totaled $111.1 million, down 5.3 percent from the fiscal 2004 fourth quarter. For the fiscal year, residential segment earnings totaled $50.2 million, a decrease of 18.8 percent from fiscal 2004. Segment earnings for the fiscal 2005 fourth quarter were $6.7 million compared with $9.1 million in the same period last year.
Commenting on Toro's outlook for fiscal 2006, Hoffman said Toro remains on track to achieve the after-tax profit margin and sales growth goals of the company's 3-year '6+8' initiative and is well-positioned to resume stronger top line growth in fiscal 2006.
The company currently expects to report a 12 percent to 15 percent increase in fiscal 2006 net earnings per share on revenue growth of 8 percent, not including any future acquisitions. For its fiscal 2006 first quarter, typically the smallest revenue period, Toro expects to report diluted earnings per share of $0.25 to $0.28.
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