May 24 -- Toro Co.'s fiscal second-quarter earnings rose 14% as unseasonably warm weather helped sales of grounds-care equipment.
"While
a portion of our results was the benefit of an accelerated spring, we are
hopeful the early start will extend the selling season and drive incremental
sales," said Chief Executive Michael J. Hoffman. "Our product line-up
is strong, our core businesses are well positioned, and our investments in
light construction, hardscapes and rental products will contribute to future
growth."
The
company raised its full-year earnings outlook by 10 cents, now seeing $4.30 a
share. It also sees revenue growth of 7% to 8%, from its previously guided
projections of 6% to 7% growth.
Toro
also declared a two-for-one split on the company's stock, given in the form of
a 100% dividend.
Toro
has seen strong bottom-line growth in recent quarters, driven by increasing
sales from the professional division, its biggest top-line contributor. Demand
for professional landscaping and irrigation equipment has been robust in recent
quarters, as new golf courses are developed. In the past six months, U.S. sales
in the golf, landscape and micro-irrigation businesses have offset challenges
in Europe, said Hoffman.
For
the quarter ended May 4, Toro reported a profit of $68.8 million, or $2.26 a
share, up from $60.3 million, or $1.88 a share, a year earlier. Its February
prediction was $2.10 a share.
Sales
increased 9.5% to $691.5 million, topping recent analyst predictions of $676
million in revenue.
Gross
margin widened to 34% from 33.8%.
At
the professional segment, including landscaping, golf and irrigation equipment,
sales rose 9%, pushing profit up 15%.
The
residential segment, including lawnmowers and snowblowers, saw an 11% sales
increase, and earnings rose 7.5%.
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