The Toro

The Toro Company (NYSE: TTC) today reported net earnings of $93.2 million, or $2.79 per share, on net sales of $1,690.4 million for its fiscal year ended October 31, 2010. In the fiscal 2009, the company delivered net earnings of $62.8 million, or $1.73 per share, on net sales of $1,523.4 million.

For the fourth quarter, Toro reported net earnings of $3.2 million, or $0.10 per share, on net sales of $337.3 million. In the comparable fiscal 2009 period, the company reported a net loss of $0.5 million, or $0.02 per share, on net sales $288.6 million.

"For Toro, it was a year marked by many successes and a return to change in the right direction," said Michael J. Hoffman, Toro's chairman and chief executive officer. "Investments we made during the downturn, along with renewed strength in our end markets, particularly worldwide golf and landscape contractor, have our revenues and profits growing once again. New product innovation was a key contributor to our growth, helping increase penetration in key categories. I am very appreciative of our team's performance and what they collectively achieved this year.

"I am also pleased to announce that we are moving forward with a new manufacturing plant in Eastern Europe to serve increasing demands for precision irrigation in agriculture in that region. The move will put Toro closer to this growing market as micro irrigation becomes both a larger part of our business and of irrigated agriculture around the world due to its more efficient use of water."

On another positive note, the company reached its strategic goal of driving 12-month average net working capital as a percentage of sales down "into the teens" in the second quarter, and made measurable progress throughout the year finishing just under 14 percent at fiscal year end. This marks an improvement of more than 50 percent from when the initiative was announced in early 2007 and Toro had roughly 30 percent of sales tied up in working capital. The company...