Outdoor power equipment maker Toro Company reported second quarter 2012 net earnings of $68.8 million on net sales of $691.5, up from 2Q fiscal 2011 net earnings of $60.3 million on net sales of $631.6 million.
In the first six months of fiscal 2012 Toro net earnings were $88.7 million on net sales of $1,115.3 million. In the first half of fiscal 2011 net earnings were $77.5 million on net sales of $1,014.8 million.
"Turf is growing - driving sales of residential mowing products, and golfers are playing more golf - contributing to revenue for golf courses and improving their ability to invest in new products," said Toro Chairman and CEO Michael J. Hoffman. "Our golf, landscape and grounds, and micro irrigation businesses in the U.S. have had a very strong first six months, which has offset challenges in our international business created by the economic issues in Europe."
Hoffman added that a portion of results came from the benefits of an accelerated spring. Still, "We are hopeful the early start will extend the selling season and drive incremental sales," said Hoffman. "We are raising our outlook for the year, even against a backdrop of a challenging sales environment in Europe, and an anticipated soft snowthrower pre-season ahead of us."
Toro expects revenue growth in fiscal 2012 to be about 7% - 8%.
Toro also announced a two-for-one split of its common stock, which will be effected in the form of a 100% stock dividend. The stock dividend will be distributed June 29 to shareholders of record as of June 15.
Toro's Residential segment 2Q 2012 net sales were $231.9 million, up 10.6% from 2Q 2011. Favorable weather accelerated the start of the spring goods selling season driving strong pre-season demand. Shipments of walk power mowers were up on improved weather and new product introductions. In the first half of fiscal 2012 residential segment net sales were $369.5 million, up 11% from 1H 2011.
Residential segment 2Q earnings were $28.5 million, up 7.5% from 2Q 2011. In the first half of 2012, residential segment earnings were $41.1 million, up 8.5% from 1H 2011.
Toro's Professional segment net sales for the second quarter were $455.9 million, up 9% from the prior year period. Professional 2Q 2012 segment earnings were $98.7 million, up 15.3% from 2Q 2011. For the first six months of 2012, professional segment earnings were $140.8 million, up 14% from 1H 2011.
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