Toro fires up sales in Q4
Toro reported fourth quarter 2019 net sales of $734.4 million, up 36.2% compared to fourth 2018 net sales of $539.3 million
For the full year, the Bloomington, Minn.-based equipment manufacturer reported net sales of $3.14 billion, up 20% compared to fiscal 2018 net sales of $2.62 billion a year ago.
The company posted earnings of $38.3 million for the fourth quarter, down 2% compared to fiscal 2018 net earnings of $39.0 million. Net earnings for the year edged upwards 0.8% to $274 million compared to fiscal 2018 net earnings of $271.9 million.
Sales from Toro’s professional segment rose 46.9% to $588.2 million for the fourth quarter and increased 25.5% to $2.44 billion for the year. For both periods, the addition of Charles Machine Works was the main driver of net sales growth, the company said.
Residential sales increased 1.9% to $135.7 million in the fourth quarter and rose 1% to $661.3 million for the year. The company said that fourth quarter sales growth was due to strong snow thrower demand and new product introductions, somewhat offset by weaker demand for zero-turn riding and walk power mowers.
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The bottom line: While earnings were nearly flat for the quarter and the year, the addition of Charles Machine Works fired up Toro’s sales.
What the CEO said: "We concluded fiscal 2019 by exceeding the $3 billion revenue milestone and delivering strong gross margin and revenue growth momentum heading into fiscal 2020," said Richard Olson, Toro chairman and CEO. "The year was marked by record results, the transformational acquisition of Charles Machine Works and strong demand for snow and ice management products in our professional and residential segments."
"With the first quarter of fiscal 2020 underway, we are encouraged by the retail activity in our professional and residential snow and ice management products. The fundamentals of the business remain strong and we expect to generate higher levels of free cash flow and return value to our shareholders through dividends and share repurchases," said Olson.
Company info: Toro’s full fourth quarter and fiscal 2019 report can be read here.
For the full year, the Bloomington, Minn.-based equipment manufacturer reported net sales of $3.14 billion, up 20% compared to fiscal 2018 net sales of $2.62 billion a year ago.
The company posted earnings of $38.3 million for the fourth quarter, down 2% compared to fiscal 2018 net earnings of $39.0 million. Net earnings for the year edged upwards 0.8% to $274 million compared to fiscal 2018 net earnings of $271.9 million.Sales from Toro’s professional segment rose 46.9% to $588.2 million for the fourth quarter and increased 25.5% to $2.44 billion for the year. For both periods, the addition of Charles Machine Works was the main driver of net sales growth, the company said.
Residential sales increased 1.9% to $135.7 million in the fourth quarter and rose 1% to $661.3 million for the year. The company said that fourth quarter sales growth was due to strong snow thrower demand and new product introductions, somewhat offset by weaker demand for zero-turn riding and walk power mowers.
###
The bottom line: While earnings were nearly flat for the quarter and the year, the addition of Charles Machine Works fired up Toro’s sales.
What the CEO said: "We concluded fiscal 2019 by exceeding the $3 billion revenue milestone and delivering strong gross margin and revenue growth momentum heading into fiscal 2020," said Richard Olson, Toro chairman and CEO. "The year was marked by record results, the transformational acquisition of Charles Machine Works and strong demand for snow and ice management products in our professional and residential segments."
"With the first quarter of fiscal 2020 underway, we are encouraged by the retail activity in our professional and residential snow and ice management products. The fundamentals of the business remain strong and we expect to generate higher levels of free cash flow and return value to our shareholders through dividends and share repurchases," said Olson.
Company info: Toro’s full fourth quarter and fiscal 2019 report can be read here.