BLOOMINGTON, Minn. – Toro Co., a large manufacturer and retailer of equipment for lawn and turf maintenance and snow removal, earlier this week reported a modest profit for its fiscal fourth quarter and predicted higher earnings in its 2000 fiscal year.
Toro reported net income for the 1999 fiscal year at $36.1 million, compared to net income of $13.2 million in the 1998 fiscal year. The low earnings in 1998 were partially due to a fourth quarter loss of $9.6 million. The company rebounded this year to increase its profits through a major restructuring of the company. Toro said the momentum from the 1999 fiscal year is expected to carry over into 2000.
The company attributed the stronger 1999 results to gains in both professional and residential units. "Our professional markets are healthy and we are committed to growing all of our professional business units. Our residential outlook also looks strong and very positive, assuming normal weather and economic conditions, as we continue to build on the new products we have introduced to the marketplace and to refine channel strategies," said Kendrick Melrose, Toro chairman and chief executive.
Toro's professional business segment is comprised of commercial equipment, Toro and Irritrol brands of contractor-installed irrigation systems, Toro and Exmark brands of landscape contractor equipment and agricultural irrigation. Professional sales were up 14.2 percent for the year led by sales increases to golf courses, landscape contractors and grounds maintenance customers. Sales for this segment benefited from the growth of the landscape market, customer acceptance of new products, new golf course openings and renovations of existing courses.
Toro's residential business is comprised of consumer products, including power mowers, blower vacuums, string trimmers, riding mowers, snowthrowers and do-it-yourself irrigation products. According to the company, the introduction of the Toro Personal Pace lawn mower and improved snowthrower sales helped boost sales for the residential segment.
Toro also announced that international sales were up 7.0 percent for the year and 7.2 percent for the quarter due to strong commercial sales. Other international news included Toro’s announcement of being named the official supplier of equipment and irrigation to the European PGA Tour.