Tax reform hurts Toro earnings

The Toro Company reported first quarter 2018 net sales increased 6.3% to $548.2 million from net sales of $515.8 million in the first quarter of 2017.

The Bloomington, Minn.-based outdoor power equipment manufacturer also reported first quarter net earnings of $22.6 million, significantly down from first quarter 2017 net earnings of $45 million. Toro reported that net earnings for the quarter include one-time charges from U.S. tax reform and adjusted net earnings were $52.1 million. The reported tax rate for the first quarter was 66% percent compared to 24.5% last year, according to Toro.

Professional segment net sales for the first quarter were $403.7 million, up 8.6% from $371.8 million last year. Toro said sales of zero-turn riding mowers in its landscape business increased as the channel prepares for the spring selling season.

Residential segment net sales for the first quarter were $142.5 million, up 1.5% from $140.4 million last year. Below average snowfall early in the season, combined with below average snow events in the Midwest, negatively impacted sales of Toro’s residential snow thrower products, the company said.