Toro revs up profits in Q1

Outdoor equipment manufacturer Toro Company reported first quarter 2021 sales of $873 million, a 13.7% increase from $767.5 million in the first quarter of fiscal 2020.

Net earnings for the first quarter jumped 58.8% to $113.3 million from first quarter 2020 net earnings of $70.1 million.

Residential sales for the first quarter were $217.7 million, rising 31.3% compared with $165.8 million in the same period last year.

The increase in residential sales was primarily due to strong retail demand for snow equipment and Flex-Force battery-powered products, as well as increased shipments of walk power mowers.

Professional segment sales were $650.2 million, up 9.3% compared with $594.7 million in the same period last year.

Toro attributed the increase in pro products to higher shipments of landscape contractor zero-turn riding mowers and incremental sales from the Venture Products acquisition.

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The Bottom Line: Net earnings rocket upwards by 58.8% to $113.3 million as sales total first quarter sales move ahead 13.7%.

What the CEO said: “We began fiscal 2021 with strong momentum across our professional and residential businesses,” said Richard Olson, chairman and CEO of Toro. “This drove double-digit top-line growth in the current dynamic environment, primarily due to higher shipments of professional landscape contractor zero-turn riding mowers and robust retail demand for residential snow equipment and Flex-Force battery-powered products. Incremental sales from the Venture Products acquisition also contributed to first-quarter growth. We expanded profitability in the quarter by executing on our productivity initiatives and through disciplined cost management.

Company info: The full first quarter 2021 report from Toro Company can be read here.