Turf maintenance equipment provider The Toro Co. (TTC) reported Thursday a drop in second-quarter profit, primarily due to lower sales, as shipments to both professional and residential markets declined year-on-year. The company also lowered its guidance for fiscal 2009.
For the second quarter, net earnings declined sharply to $36.9 million or $1.00 per share from $62.8 million or $1.60 per share in the previous year.
On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.90 per share in the second quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter declined to $499.9 million from $638.5 million last year.
The global slump reduced shipments to both the professional and residential markets and caused a decline in golf equipment and project spending, sustained weakness in commercial construction and housing, and low consumer demand, the company said.
Professional segment net sales were $310.4 million, down 29.2% from the prior year. Residential segment net sales dipped 4.7% to $183.6 million, because shipments of riding products declined as consumers put a check on larger purchases.
For the six-month period, net earnings dropped to $43.6 million or $1.18 per share from $81.4 million or $2.07 per share in the past year. Net sales dropped to $840 million from $1.04 billion.
Looking forward, the company lowered its earnings outlook for fiscal 2009 to a range between $1.60 and $1.80 per share from its prior guidance range of $1.75 to $2.00 per share. Analysts currently forecast earnings of $1.64 per share for the full year.
Toro now expects fiscal 2009 revenues to decline about 18% from last year, compared to earlier projected decline of about 15%.
TTC is currently trading at $31.98, up $3.99 or 14.26%, on the NYSE.
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