The Toro Company said that it now expects net earnings per share for its fiscal second quarter ending May 2, 2008 to range from $1.55 to $1.60 compared to its previous guidance for the period of $1.87 to $1.93. In the comparable fiscal 2007 period, the company reported net earnings per share of $1.77.
Weak economic conditions, a late-arriving spring in much of the country, and cautious ordering by the company’s domestic customers has resulted in lower than expected domestic shipments. “We are disappointed in having to reduce our earnings outlook, but we believe these market conditions will persist for the remainder of the year. We continue to take prudent actions to manage through these challenging times by addressing spending, production adjustments and working capital management,” said Michael J. Hoffman, Toro’s chairman and CEO.
For the fiscal year ending October 31, 2008, the company said it now expects net earnings per share to be even to down 5% from the previous fiscal year’s $3.40, on approximately flat revenues. Toro will release second quarter earnings on May 22, 2008.