While Toro still faces inflationary pressures, supply chain improvements and price increases helped drive a 54% profit increase in the Bloomington-based company's first quarter.
Toro sees quarterly profits rise more than 50%
Improving supply chains helped drive manufacturing efficiencies and earnings growth.
March 9, 2023 at 3:56PM
Manufacturing efficiency improved, helping Toro earn $106.9 million on revenue that grew 23% to $1.1 billion.
Adjusted earnings were a record 98 cents a share, up 49% from a year ago and beating analysts expectations.
"We anticipate continued improvements in the supply chain, which combined with our operational execution, position us to increase product availability and enhance profitability," said Chief Executive Rick Olson said in a news release.
Bloomington-based Toro makes professional and residential grounds maintenance and snow and ice management products. Each segment saw revenue growth in the quarter ended Feb. 3.
Sales in the professional segment increased 31% to $880.7 million and were helped by the acquisition of the Intimidator Group, a maker of zero-turn mowers, in the first quarter a year ago. The residential segment revenue grew 4% to $264.6 million.
Earnings in the professional segment grew 54% to $144.1 million and grew 19% to $37.8 million in the residential segment.
The company said it is still dealing with inflationary pressures including higher material, freight and manufacturing costs.
Olson and analysts on the earnings call thanked and congratulated Chief Financial Officer Renee Peterson who announced her plans to retire on Feb. 14. Angie Drake has been promoted to succeed Peterson and officially takes over after Toro files its quarterly financial statement with the Securities and Exchange Commission.
Toro shares closed Thursday at $115.06 a share, up 1.6%.
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