Toro rides big sales in Q2
Toro Company reported second quarter 2019 sales increased 9.9% to $962 million, fueled by its recenet acquisition of Charles Machine Works.
Sales also grew 9.9% to $1.56 billion for the first six months of the year.
The Bloomington, Ind.-based manufacturer reported first quarter net earnings of $115.6 million, down about 12% from net earnings of $131.3 million for the same period a year ago. Net earnings for the first half of the year were nearly flat at $182.7 million compared to $182.4 million for the first six months of 2018.
Residential segment net sales for the second quarter were $232.1 million, up 9.4% from $212.2 million last year. For the first six months, residential segment net sales were $377.3 million, up 6.4% percent from $354.7 million last year. For both periods, the increases were primarily due to strong demand for domestic walk power and zero-turn riding mowers and increased shipments of snow throwers, Toro reported.
Residential segment earnings for the second quarter were $22.0 million, down 16.2% from $26.3 million in the comparable period last year. Residential segment earnings for the first six months were $35.1 million, down 16.5% from $42.0 million in the same period last year. The decreases in both periods were largely due to the unfavorable impacts of tariff and trade related cost increases, Toro said.
Toro completed its acquisition of Charles Machine Works last month. The $700 million cash deal was originally announced in February.
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The Bottom Line: Sales in Q2 rise nearly 10% to $962 million while earnings drop 12% due to tariff and trade impacts.
What the CEO said: The first half of 2019 has been dynamic for The Toro Company," said Richard Olson, Toro and CEO. "We continue to be excited about the transformational acquisition of Charles Machine Works, while managing through unfavorable weather conditions in key regions. Poor spring weather, particularly in April, across much of the United States and Australia not only negatively impacted demand for spring turf products, but it also caused disruption in our supply chain and shipping capabilities. However, despite these headwinds, we have finished the first half of the year with solid revenue growth.”
Company info: The full second quarter 2019 report from Toro can be read here.
Sales also grew 9.9% to $1.56 billion for the first six months of the year.
The Bloomington, Ind.-based manufacturer reported first quarter net earnings of $115.6 million, down about 12% from net earnings of $131.3 million for the same period a year ago. Net earnings for the first half of the year were nearly flat at $182.7 million compared to $182.4 million for the first six months of 2018.
Residential segment net sales for the second quarter were $232.1 million, up 9.4% from $212.2 million last year. For the first six months, residential segment net sales were $377.3 million, up 6.4% percent from $354.7 million last year. For both periods, the increases were primarily due to strong demand for domestic walk power and zero-turn riding mowers and increased shipments of snow throwers, Toro reported.
Residential segment earnings for the second quarter were $22.0 million, down 16.2% from $26.3 million in the comparable period last year. Residential segment earnings for the first six months were $35.1 million, down 16.5% from $42.0 million in the same period last year. The decreases in both periods were largely due to the unfavorable impacts of tariff and trade related cost increases, Toro said.
Toro completed its acquisition of Charles Machine Works last month. The $700 million cash deal was originally announced in February.
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The Bottom Line: Sales in Q2 rise nearly 10% to $962 million while earnings drop 12% due to tariff and trade impacts.
What the CEO said: The first half of 2019 has been dynamic for The Toro Company," said Richard Olson, Toro and CEO. "We continue to be excited about the transformational acquisition of Charles Machine Works, while managing through unfavorable weather conditions in key regions. Poor spring weather, particularly in April, across much of the United States and Australia not only negatively impacted demand for spring turf products, but it also caused disruption in our supply chain and shipping capabilities. However, despite these headwinds, we have finished the first half of the year with solid revenue growth.”
Company info: The full second quarter 2019 report from Toro can be read here.