Toro profits jump in Q3

The Toro Company reported third quarter net sales of $841 million, edging upward slightly by 0.3% from net sales of $838.7 million in the third quarter of 2019.

Sales for the first three quarters of 2020 were $2.54 billion, rising 5.6% from sales of $2.4 billion in the first three quarters of 2019.

Toro also reported that net earnings jumped 46.8% to $89 million for the third quarter compared to earnings of $60.6 million for the same period a year ago.

Net earnings for the first nine months of 2020 reached $257.5 million, a 9.2% climb from net earnings $235.7 million.

Residential segment net sales for the third quarter were $205 million, up 38.3% compared with $148.2 million in the same period last year. The net sales increase was attributed to strong retail demand for zero-turn riding and walk power mowers and the company's expanded mass retail channel.

For the first nine months of fiscal 2020, residential segment net sales were $632.8 million, up 20.4% compared with $525.5 million in the same period last year.

Professional sales for the third quarter were $623.6 million, down 7.9% compared with $676.8 million in the same period last year, primarily due to reduced channel demand as a result of COVID-19 related impacts, the company said.

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The Bottom Line: Profits at the Toro Company jump nearly 47% to $89 million in the third quarter as residential sales increase more than 38%.

What the CEO said: “We reported top-line growth in a challenging environment, primarily due to the continued strength of our residential segment as favorable weather, our new product lineup and stay-at-home trends drove robust demand in the mass and dealer channels,” said Richard Olson, chairman and CEO of Toro Company.

Company info: The full third quarter 2020 financial report from the Toro Company can be read here.