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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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.