The Toro Company, Bloomington, Minnesota, reported net earnings of $22.6 million or $0.21 per share on a net sales increase of 6.3 percent to $548.2 million for its first quarter ended Feb. 2, 2018. The company says due to the one-time impacts of U.S. tax reform, reported first quarter net earnings were lower than the comparable 2017 reported net earnings of $45 million or $0.41 per share on net sales of $515.8 million.
Adjusted 2018 first quarter net earnings were $52.1 million, or $0.48 per share, which includes $0.06 benefit from the lower corporate tax rate, partially offset by $0.03 attributed to the excess tax deduction for share-based compensation, compared to adjusted net earnings of $40.1 million, or $0.37 per share in the comparable 2017 period, an increase of 29.7 percent.
“Fiscal 2018 is off to a good start, achieving record operating performance in the first quarter,” says Richard M. Olson, Toro chairman and CEO. “Our landscape contractor businesses benefitted from strong orders for our professional zero-turn mowers, led by our Exmark line which recently expanded its RED Technology platform. This new technology enables unprecedented communication among key mower systems to increase machine efficiency, ease of use and long-term durability.”
Olson continues, “We are seeing positive trends in our golf business with increased sales of greens mowers and large reel units that feature our Toro EdgeSeries reels. Customers are impressed by the enhanced quality of cut and reduced maintenance costs these reels deliver. The new Outcross 9060 also generated excitement at the recent Golf Industry Show.
This new turf-friendly machine features smart technology designed to simplify operation providing greater flexibility in the deployment of labor.”