The Toro Co. last week reported net earnings of $35.1 million, or $1.11 per share, on net sales of $501 million for its fiscal third quarter ended July 29, a 5.1-percent year-over-year increase. The company’s third-quarter earnings were reduced by $0.09 per share to account for a product rework expense. In the comparable fiscal 2010 period, the company reported net earnings of $33.4 million, or $1.01 per share, on net sales of $458.9 million.
For the first nine months, Toro reported net earnings of $112.6 million, or $3.51 per share, on net sales of $1,515.9 million, a 25.1-percent earnings jump. In the comparable fiscal 2010 period, the company posted net earnings of $90 million, or $2.66 per share, on net sales of $1,353.1 million.
“We delivered record sales over what was a good third quarter last year,” said Michael Hoffman, Toro’s chairman and CEO. “Unfortunately, weather around the country slowed sales in our residential and landscape contractor businesses, and a disappointing walk power mower rework issue negatively impacted earnings for the quarter. Even so, demand for golf and grounds equipment around the world remained strong, and adoption of our micro irrigation solutions continued to grow, which helped drive strong quarterly results.”
Accounts receivable at the end of the third quarter totaled $199 million, up 17 percent from the prior-year period, on a sales increase of 9 percent. Net inventories were $232.4 million, up 31 percent from the comparable fiscal 2010 period. Trade payables were $126.7 million, up 7.4 percent compared with last year.
“Even with the external challenges of weather and the economy, along with the rework issue, we posted very solid results for the first nine months and remain committed to our revenue and EPS guidance for the year,” said Hoffman.
The company continues to expect net earnings for fiscal 2011 to be about $3.60 per share on a revenue increase of about 10 to 12 percent.
The Toro Co., Bloomington, Minn., is a worldwide provider of turf and landscape maintenance equipment, and precision irrigation systems, to help customers care for golf courses, sports fields, public green spaces, commercial and residential properties, and agricultural fields.