The Toro Co. reported record net sales and net earnings for the fiscal year ended Oct. 31, 2007. Net earnings for the year totaled $142.4 million, or $3.40 per share, compared with net earnings of $129.1 million, or $2.91 per share, in fiscal 2006. Net sales for fiscal 2007 increased 2.2 percent to $1,876.9 million from $1,836 million last year.
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For the fourth quarter, Toro reported net earnings of $6.5 million, or $0.16 per share, on net sales of $332.5 million. In the comparable fiscal 2006 period, the company reported net earnings of $4.5 million, or $0.10 per share, on net sales of $329.5 million.
During fiscal 2007, continued strong cash flows enabled the company to use $202.3 million for share repurchases and dividend payments. Additionally, the company’s board of directors increased the quarterly dividend from $0.12 to $0.15 per common share, payable Jan. 11, 2008 to shareholders of record on December 17, 2007.
“In challenging market conditions, our performance in fiscal 2007 highlights the strength and resiliency of our company,” says Michael J. Hoffman, chairman and c.e.o. “We completed another record year of increased net sales and net earnings with solid growth in the worldwide professional segment. We believe these results indicate that Toro has outperformed in a soft market.”
The company reported worldwide growth in its professional segment net sales which helped offset softness in the residential segment worldwide. International net sales increased 9.6 percent over 2006 and accounted for 29 percent of total net sales, an increase from 27 percent in 2006.
Professional Segment Results
Professional segment net sales for fiscal 2007 increased 3.7 percent to $1,270.5 million. Increases in worldwide net sales of equipment and irrigation systems to the sports field and grounds and golf markets were driven by strong acceptance of new products. Additionally, the acquisition of Rain Master and currency effects contributed to this increase. Partially offsetting this increase were field inventory reductions of landscape contractor products resulting in modest declines in the sale of these products.
Professional segment earnings for fiscal 2007 increased 11.6 percent to $254.2 million. For the fiscal 2007 fourth quarter, professional segment net sales totaled $218.2 million compared with $212.3 million in the fiscal 2006 fourth quarter.
Professional segment earnings for the fourth quarter totaled $26.7 million compared with $20.5 million in the corresponding quarter last year.
