Toro Drives the Bottom Line

Talk about finishing strong - Toro did it.

The manufacturer of equipment and irrigation systems more than doubled its fourth quarter profits, posting net income of nearly $5 million compared to $2.2 million for the fourth quarter of 2001.

But the golf course market gets most of the credit. Overall sales dropped nearly 3 percent in the quarter, primarily "due to lower snowthrower and landscape equipment revenue," the company explained.

For its fiscal year, Toro reported net sales of $1.4 billion (up roughly 3 percent from 2001) and earnings of $35.3 million (down roughly 30 percent).

"We are very pleased with results of the fourth quarter and year," noted Kendrick Melrose, Toro's chairman and chief executive officer. "While every business has been subject to trying conditions this past year, Toro has demonstrated solid earnings growth in spite of less than desirable weather conditions and an uncertain economy."

Toro's focus on cutting costs clearly came at the right time as the company closed three manufacturing facilities while expanding two others and opening one new plant. As a result, the company's stock continues to soar, closing the year at roughly $65 a share, which is nearly a 50 percent increase over the last 12 months.

Looking at Toro's various business segments for the year, the professional equipment sales and irrigation sales grew slightly. "Residential/commercial irrigation sales were also up worldwide as Toro took advantage of low field inventory and increased demand for Irritrol products," noted the company in a release.

Sales of landscape equipment suffered from high field inventories entering 2002, but the company has worked to correct that situation heading in 2003.