Toro Sales Climb, '03 Earnings Double

The Toro Company has reported record net earnings of $81.6 million – or $3.12 per diluted share – on record net sales totaling $1,496.6 million for the fiscal year ending October 2003.

The manufacturing company’s fiscal 2003 figures reflect after-tax restructuring and other expense charges of $0.04 per diluted share and a gain of $0.08 per diluted share from a recent legal settlement. For its fiscal 2003 fourth-quarter ended October 31, Toro reported net earnings of $5.6 million, or $0.21 per diluted share, on net sales of $310.3 million. Results for the fiscal 2003 fourth quarter also included after-tax restructuring and other expense charge totaling $0.01 per diluted share.

Sales growth in both the recent quarter and the year are attributed primarily to a substantial increase in Toro’s landscape contractor equipment business, with especially strong results from new product sales. For the year, worldwide sales climbed in all major product categories and profited from favorable foreign currency exchange effects.

Toro reached the 5.5-percent profit-after-tax goal of its three-year profit-improvement initiative, explained Kendrick Melrose, chairman and CEO of the company.

“A tremendous company-wide effort made 2003 the best year in Toro's history,” he commented. “Our new three-year campaign will add a major focus on stronger revenue growth through accelerated investments in new innovation initiatives, expanding current markets and strengthening our position with emerging and underserved customer groups.”

Looking ahead, Toro intends to deliver a 10- to 12-percent increase on fiscal 2003’s $3.12 in diluted earnings per share with net sales growth of 7 to 9 percent. “Our major seasons have yet to begin, and because of the inevitable uncertainties related to weather, the economy and global geo-political issues, our outlook for fiscal 2004 is cautiously optimistic. As our 2003 results demonstrate, however, we are very dedicated to achieving our financial goals regardless of overall business conditions,” Melrose maintained.