Toro Reports 3Q Earnings

BLOOMINGTON, Minn. – Toro Co.’s fiscal third-quarter net income rose 23 percent, benefiting from the company's profit improvement steps, which began in fiscal 2000. Implementing a project entitled “5 by Five,” the company has worked toward a 5-percent net profit margin by the end of fiscal year 2003. The focus is on operational efficiency where every department from manufacturing to distribution to marketing to purchasing is under scrutiny to improve.

Based on the company’s strong performance through the first nine months of the fiscal year to date, Toro expects full-year earnings better than last year’s figures. In a press release Tuesday, the provider of outdoor maintenance and beautification products said it earned $27 million for the quarter, or $1.03 a share, up from $21.9 million, or 84 cents a share, a year ago.

Compared with the fiscal 2002 third quarter, fiscal 2003 third-quarter professional segment sales increased 3.7 percent to $244.1 million. Professional segment sales benefited from initial stocking orders and strong acceptance of new Exmark and Toro brand landscape contractor equipment. Other key contributors to third-quarter professional segment sales growth were new golf greens mowing equipment, service parts, Toro-branded residential/commercial irrigation products and favorable effects of currency.
Adjusted earnings for the latest period, which exclude a restructuring charge, were $28.1 million, or $1.07 a share. Third-quarter revenue rose to $394.5 million from $375.6 million a year ago.

The company expects fiscal 2003 earnings of $3.08 to $3.10 a share, which includes a legal settlement, restructuring and other expenses. For the year ended Oct. 31, 2002, Toro reported adjusted earnings of $2.45 a share, which reflects a 2-for-1 stock split.

Dow Jones Business News and The Online Investor contributed to this report.