The Toro Company reported net earnings of $40.1 million, or $0.68 per share, on a net sales increase of 1.2 percent to $509.9 million for its fiscal third quarter ended August 2, 2013.
This is up slightly from the comparable fiscal 2012 period, when the Bloomington, Minnesota-based company delivered net earnings of $40.5 million, or $0.67 per share on net sales of $504.1 million.
For the first nine months, Toro reported net earnings of $149.9 million, or $2.53 per share, on a net sales increase of 2.4 percent to $1,659.1 million. In the comparable fiscal 2012 period, the company posted net earnings of $129.3 million, or $2.13 per share, on net sales of $1,619.4 million.
“For the quarter, our results were strengthened by a summer growing season with favorable temperatures and precipitation levels, as compared to last year’s severe drought conditions,” said Chairman and Chief Executive Officer Michael J. Hoffman. “The more desirable weather helped us drive retail sales across most of our businesses and, in particular, our residential business.”
Toro’s earnings were affected by a government-mandated phase-in of changes to diesel engine designs intended to lower emissions, known as ‘Tier 4.’ Manufacturers of diesel engines were required to make Tier 4-required modifications by 2013. “As anticipated, the Tier 4 diesel engine transition, which caused a significant portion of our professional sales to be accelerated into our first quarter from later quarters, as we’ve historically seen, continued to impact the quarterly results for our professional (contractor) business,” said Hoffman.