Snowthrower Sales Drop Doesn't Stop Toro From Reporting Record Results
Dec 7, 2012
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The weather is always a factor in the outdoor power equipment business, and The Toro Company's snowthrower sales took a big hit in its fiscal year 2012 after Mother Nature held back on the snow during the winter of 2011-2012. That didn't stop the company from reporting record results for the fiscal year.
Toro's Residential segment net sales in fiscal 2012 were $607.4 million, down from $623.9 million in fiscal 2011. Snow thrower sales were down about 50% for the year due to the lack of snowfall and the resulting soft preseason demand in the fourth quarter.
Shipments of walk power mowers and riding products were up for the year, which Toro attributes in part to a successful launch of the TimeMaster 30-inch walk power mower.
For the fourth quarter, residential segment net sales were $102 million, down 28.9% from the 4Q 2011, which was blamed on reduced snowthrower demand.
Residential segment earnings for fiscal 2012 were $57.9 million, up 6.4% from fiscal 2011. In 4Q 2012 residential segment earnings were $6.7 million, down from $11.9 million in 4Q 2011.
Toro, based in Bloomington, MN, U.S., reported net earnings for the company overall of $129.5 million on a net sales increase of 4% to $1,958.7 million for its fiscal year 2012, which ended Oct. 31, 2012. In fiscal 2011, the outdoor power equipment company had net earnings of $117.7 million on net sales of $1,884 million.
In the fourth quarter, Toro reported net earnings of $0.3 million, on a net sales decrease of 7.8% to $339.3 million. In the comparable fiscal 2011 period, the company posted net earnings of $5 million on net sales of $368.1 million.
Toro expects revenue growth for fiscal 2013 to be about 4% to 5%.
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