Toro deems Q1 a 'record' quarter
The Toro Company reported a "record" first quarter, owing to the introduction of new product offerings in the pro segment and strong demand for zero-turn mowers.
Net sales were up 6.1% to $515.8 million for the quarter ended Feb. 3, 2017, compared to sales of $486.4 million in the year-ago period.
Net earnings came in at $45.0 million, up from $39.3 million in the first quarter of last year.
“The company is off to a solid start for the year with record results for the first quarter,” said Richard Olson, Toro’s president and CEO. “Growth in the professional segment was a key driver with new product offerings in multiple areas. The landscape contractor businesses experienced strong demand for the new lines of professional zero-turn mowers. Also contributing to the momentum were strong sales in our golf, BOSS snow and ice management and specialty construction businesses.”
“We continue to focus on delivering new products with customer-valued innovation," he added. "The new TITAN HD and Exmark Radius mowers have been well-received by landscape professionals and acreage owners. Demand remains strong for the new BOSS EXT extendable plows and the lighter HTX plows for half-ton trucks as well as V-Box spreaders. In our micro-irrigation business, we are pleased by the success of our Aqua-Traxx tape products with flow control. Finally, at the recent Golf Industry and Sports Turf Manager Shows, excitement continues for the GTX utility vehicle line that combines tremendous versatility with uncompromising ride quality.”
“Another important element in our strong results for the quarter was the team’s focus on productivity and management of inventory and expenses, all of which helped us make good progress on our Destination Prime initiative," concluded Olson. "As the year progresses we will maintain an emphasis on these efforts. As always, we will remain committed to delivering innovative solutions to the industries we serve, while being mindful of the impacts that unfavorable weather or market conditions could present. We are well positioned to maintain flexibility in our operations while successfully serving our customers and generating profitable growth.”
The company reaffirmed its 2017 guidance of 3% to 4% revenue growth, and now expects net earnings per share to be about $2.25 to $2.30 for the year. For the second quarter, the company expects net earnings to be about $1.00 per share.