Toro plows ahead in Q3
The Toro Company posted what it referred to as record results for the third fiscal quarter -- and the company announced a new president while it was at it.
Net sales increased 7.4% to a total of $609.6 million for the three months ended July 31, with net earnings of $53.3 million.
That compares to net sales of $567.5 million in the prior-year period, as well as net earnings of $50 million.
The sunny outlook, according to chairman and CEO Michael Hoffman, is owed to summer weather and recent acquisitions such as the BOSS line.
“Favorable summer growing conditions, particularly in our domestic markets, coupled with the success of new product introductions drove increased retail sales for the quarter,” said Hoffman. “On behalf of our global team, we are pleased to deliver record third quarter results as we benefit from the growth provided by the recent acquisition of the BOSS line of snow and ice management products as well as ongoing demand for our Toro and Exmark branded landscape contractor equipment. We also saw strong growth in our specialty construction business and consistent performance in our residential segment, driven by solid world-wide demand for zero-turn riding mowers and domestic demand for walk power mowers."
The company also announced the appointment of Richard Olson to the role of president and COO, effective September 1.
Olson has been with the company for 29 years, most recently serving as group VP of the International and Micro-Irrigation businesses while also having responsibility for global distributor development and its wholly-owned domestic distributorships.
“The rich company knowledge and broad experience that Rick has gained through his leadership of both our businesses and manufacturing operations provide him with the unique strategic perspective that will be instrumental in helping us drive toward the achievement of our Destination PRIME goals and beyond,” said Hoffman. “In addition, his deep commitment to our mission of delivering superior product innovation and superior customer care will help enable us to sustain and grow our market leadership positions and deliver successful results for our employees, customers and shareholders long into the future.”
Toro also raised its full-year earnings outlook to about $3.50, with full-year revenue expected to increase 10% (up from the previous expectation of 8 to 10%).