Toro swings to a loss in Q4

Bloomington, Minn.-based outdoor maintenance equipment manufacturer Toro believes market contractions are for the most part in the rear-view mirror.

For the quarter, the company reported a net loss of $532,000, compared with earnings of $13,000 for the same quarter last year. Sales were $288.5 million, down 15.4% from $341.4 million as reported for the same quarter last year.

For the full year, the company reported earnings of $62.8 million, down 47.5% from $119.7 million as reported for 2008. Sales were $1.52 billion, down 23.3% from $1.88 billion as reported for 2008.

“In the face of extraordinarily difficult market and operating conditions, we took early and decisive action to ensure liquidity, grow our market share and balance the short-term challenges against the long-term needs of the organization,” said Michael Hoffman, Toro’s chairman and CEO. “Through solid customer relationships and product lines enriched by many new innovations, we had great success winning share even as our markets contracted. Additionally, the actions we took during the year to adjust production and manage inventories resulted in lower seasonal borrowing and a stronger balance sheet."

Looking forward, Hoffman said that he believes demand in the company’s end markets is stabilizing and that the declines are mostly behind them. “While much uncertainty remains as to the pace and degree of the economic recovery, we are encouraged by our strong customer relationships, continued high level of new products and the ability to invest in new opportunities. We have taken measures to adjust our cost structure, improve our overall operating effectiveness and will be more flexible to react to retail demand in the year ahead.”

The company also said it expects fiscal 2010 earnings to be about $2.00 per share.