Toro turns in strong 2018
Pro segment sales rise 11.1% for the power equipment manufacturer.
The Toro Company reported fourth quarter 2018 net sales of $539.3 million, rising 10.4% from fourth quarter 2017 net sales of $488.6 million.
For its fiscal year ending Oct. 31, Toro posted record net sales of $2.61 billion, a 4.5% increase from net sales of $2.51 billion in the prior fiscal year.
The Bloomington, Minn.-based power equipment manufacturer also reported fourth quarter net earnings of $39 million for the fourth quarter – an increase of more than 15% from net earnings of $33.8 million for the same period a year ago. Earnings for the year increased a little more than 1% to $272 million from $268 million in 2017.
Professional segment net sales rose 7.5% to $1.94 billion in 2018 from $1.81 billion last year. For the quarter, pro sales grew 11.1% to $400.5 million from $360.4 million a year ago. Earnings in the pro segment were up 5.4% to $399.8 million for the year.
Residential net sales for fiscal 2018 were $654.4 million, down 2.8% from $673.2 million last year. For the fourth quarter, residential sales were $133.2 million, up 8.7% fom $122.6 million last year. Earnings in the residential segment were down 13.2% to $64.8 million.
The full-year residential results were impacted by poor winter conditions early in the year, followed by a late start to spring in many parts of North America, the company said. The second half of the fiscal year saw warmer weather and favorable moisture, which triggered demand for both walk power and zero-turn riding mowers.
“We are pleased to deliver another record year with solid revenue growth led by the professional segment and a strong rebound by our residential business in the second half of the year, driven by an exciting lineup of new products and innovative technologies,” said Richard Olson, Toro’s chairman and CEO.
Olson noted that the company battled rising steel prices, the impacts of tariffs, and increased freight rates, which all had a negative impact on costs.
“With the first quarter of fiscal 2019 underway, we are encouraged by the retail activity in our professional and residential snow and ice management businesses,” Olson said.
HBSDealer Stock Watch: Drop Continues
|On Tuesday, all 30 hardware and building supply stocks tracked by HBSDealer finished the day lower — some of them dramatically lower. On a day when the Dow 30 and the S&P 500 were both down more than 3%, BLDR dropped more than 14%; and LL declined more than 8%.
[CORRECTION: A previous version of this article reported the following data as if it were from Wednesday. The financial markets were closed Wednesday in observance a national day of mourning for the funeral of President George H.W. Bush. HBSDealer regrets the error.]
|BLDR (Builders FS)||12.24||-14.25%|
|BMCH (BMC Stock)||16.55||-5.43%|
|CENT (Central Garden)||33.16||-3.72%|
|DE (Deere & Co.)||151.59||-6.55%|
|HD (Home Depot)||175.30||-3.54%|
|LL (Lumber Liquidators)||11.18||-8.81%|
|SMG (Scotts Miracle-Gro)||72.49||-4.01%|
|TSCO (Tractor Supply)||92.99||-2.87%|
|UFPI (Universal Forest)||26.32||-6.13%|
3M stands up for sustainability
Company announces new commitment during global climate conference.
St. Paul, Minn.-based 3M rolls out about 1,000 products each year. And beginning in 2019, all new product introductions will include a sustainability value commitment.
Examples of 3M’s sustainability value commitment for new products include reusability, recyclability, energy, waste, water savings, responsible sourcing, and/or renewable materials appropriate to the specific product, from the beginning to the end of each product’s lifecycle. This commitment also includes products with a purpose of helping to solve an environmental or social challenge, such as improving air quality, reducing greenhouse gas emissions and improving worker and patient safety in healthcare and industrial settings. 3M will measure progress and impact of this commitment and report on it annually, the company said.
3M made the announcement at the United National Climate Change Conference. “Sustainability is at the core of 3M—but we’re looking to do more,” said John Banovetz, chief technology officer, 3M. “Today at COP24 we are proud to formalize our commitment to this next step in innovating for a sustainable future.”
3M says it invests about 6% of revenue into research and development, much of it for creating new products.
The new requirement will take effect in 2019 and will apply to all five of 3M’s business groups: Health Care, Consumer, Electronics & Energy, Industrial and Safety & Graphics.
“As a large and diverse global science company with customers spanning many industries and global markets, we have the opportunity to make an even greater impact in sustainability,” said Gayle Schueller, VP and chief sustainability officer, 3M. “We’ve made such significant progress on the 2025 sustainability goals we set in 2015 that we’re raising the bar. The new product goal is an example of the aggressive targets we’ll be setting in coming months as part our strategic focus on empowering science for circular, climate and community.”
3M points to a long-standing commitment to Sustainability from the Pollution Prevention Pays program that began in 1975 to 3M’s 2025 sustainability goals that include water, climate, and energy targets. 3M has long been a recognized leader in sustainability and has been listed on the Dow Jones Sustainability Index for 19 straight years.