The Toro Co. got a boost from overseas in its first quarter. The company reported record net sales and net earnings for the period that ended Feb. 1.
The turf equipment manufacturer reported a profit of $18.6 million, or $0.47 per share, on net sales of $405.8 million. In the comparable fiscal 2007 period, Toro reported net earnings of $18.5 million, or $0.44 per share, on net sales of $379.1 million.
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“Sales grew in both our professional and residential segments due to strong contributions from our international business,” said Michael J. Hoffman, chairman and CEO. “In addition, with our continued focus on asset management, we reduced both accounts receivable and inventory. While we’re concerned about the increasing domestic economic uncertainty, we believe our competitive position is strong and we are well-positioned for the upcoming season.”
Professional segment net sales for the fiscal 2008 first quarter increased 7.7 percent to $293.2 million. International sales growth continued in most professional businesses including strong demand from golf and grounds equipment customers. Also contributing to the increase were favorable currency effects and the acquisition of Rain Master. Partially offsetting this increase was a decline in domestic landscape equipment sales, mainly due to reductions in field inventory.
Professional segment earnings for the fiscal 2008 first quarter were $52.5 million, up $4.2 million compared with the fiscal 2007 first quarter. The increase was mainly due to higher revenues, favorable currency changes and product mix.
“We’re off to a strong start in the new fiscal year, but remain mindful that our peak selling season is still ahead of us,” said Hoffman. “Given the uncertainty in the economic environment and regional weather patterns, we are paying close attention to sales trends and field inventory, and are focusing on helping our retail partners drive demand for our strong brands and innovative new products.”
The company now expects to report an 8 to 10 percent increase in fiscal 2008 net earnings per share on revenue growth of 2 to 4 percent.
For its fiscal second quarter, Toro currently expects to report net earnings per share of $1.87 to $1.93.