Thu, Sep 5, 4:43 PM (131 days ago)
In the third quarter of fiscal 2024, The Toro Company reported net sales of $1,156.9 million, a 6.9% increase year-over-year, driven by a 52.6% rise in the Residential segment, while Professional segment sales decreased by 1.7%. Year-to-date sales decreased 1.7% to $3,507.8 million, primarily due to lower Professional segment shipments. Net earnings surged to $119.3 million from a loss of $15.0 million in the prior year, reflecting the absence of prior impairment charges. Adjusted net earnings also rose, indicating improved operational efficiency. Gross profit for the quarter increased by 8.2%, with a gross margin of 34.8%. However, the year-to-date gross margin decreased to 34.2% due to rising material costs. Operating cash flow significantly improved to $329.8 million, attributed to favorable working capital changes. Toro maintained liquidity of $818.4 million, ensuring sufficient capital for operational needs. Despite macroeconomic uncertainties affecting consumer behavior, Toro's strategic initiatives, including the AMP program aimed at cost savings, are expected to bolster future performance. The company continues to face challenges from fluctuating commodity costs and geopolitical factors impacting supply chains.