The Toro Co. last week reported net earnings of $36.9 million, or $1.00 per share, on net sales of $499.9 million for its fiscal second quarter ended May 1. In the comparable fiscal 2008 period, the company posted net earnings of $62.8 million, or $1.60 per share, on net sales of $638.5 million.
For the fiscal year to date, Toro reported net earnings of $43.6 million, or $1.18 per share, on net sales of $840 million. The company’s net earnings for the first half of fiscal 2009 were reduced by $2.1 million, or $0.04 per share on an after-tax basis, to account for workforce adjustments. In the first half of fiscal 2008, the company posted net earnings of $81.4 million, or $2.07 per share, on net sales of $1.04 billion.
Michael Hoffman, Toro’s chairman and CEO, said that shipments to both the professional and residential markets declined because of the impact of the ongoing global recession resulting in lower golf equipment and project spending, continued weakness in commercial construction and housing, and soft consumer demand.
“We believe our market share position continues to improve and our field inventory levels are down from the prior year,” said Hoffman. “To avoid building excess inventory, we remain focused on managing and aligning production with end market demand. At the same time, we are carefully controlling spending, and aggressively competing for our customers’ business.”
Given the ongoing global recession, the company has adjusted its outlook for fiscal 2009 and now expects fiscal 2009 revenues to decline about 18 percent from fiscal 2008, and net earnings per share to be approximately $1.60 to $1.80.
Toro last week also declared a regular quarterly cash dividend of 15 cents per share. The dividend is payable on July 10, to shareholders of record on June 19.
As of May 18, the company had 36,466,503 common shares outstanding.
Headquartered in Bloomington, Minn., Toro Co. is a leading worldwide provider of turf and landscape maintenance equipment, and precision irrigation systems.
