Toro Company recently released its 10-Q report, detailing its financial performance and operations. The company designs, manufactures, and sells professional turf maintenance equipment and services, operating through two segments: Professional and Residential. The Professional segment offers turf and landscape equipment products, rental, specialty, and underground construction equipment, and snow and ice management equipment, while the Residential segment provides walk power mowers, zero-turn riding mowers, snow throwers, and home solution products.
In the first quarter of fiscal 2024, Toro's consolidated net sales were $1,001.9 million, down 12.8% compared to the same period in fiscal 2023. The Professional segment's net sales decreased by 14.1% to $756.5 million, while the Residential segment's net sales decreased by 9.3% to $240.1 million. The company's net earnings for the first quarter of fiscal 2024 were $64.9 million, or $0.62 per diluted share, compared to $106.9 million, or $1.01 per diluted share, for the same period in fiscal 2023.
Toro's order backlog was significantly elevated at the end of the first quarter of fiscal 2024, driven by continued demand for underground and specialty construction and golf and grounds products. The company's field inventory levels were also higher due to certain lawn care and snow and ice management products following adverse weather conditions and macro factors experienced during the second half of fiscal 2023.
The Professional segment's worldwide net sales were impacted by lower shipments of zero-turn mowers and snow and ice management products, leading to a 21.7% decrease in segment earnings compared to the first quarter of fiscal 2023. The Residential segment also experienced a decrease in net sales, primarily driven by lower shipments of snow products and zero-turn mowers, resulting in a 37.8% decrease in segment earnings compared to the same period in fiscal 2023.
Toro's financial position saw an increase in accounts receivable and inventory levels as of the end of the first quarter of fiscal 2024 compared to the same period in fiscal 2023. The company's ongoing goal is to maintain requisite inventory levels to meet production requirements and ensure service parts availability for its customers.
Toro's new AMP initiative, announced on December 20, 2023, is intended to result in annualized cost savings of at least $100 million by fiscal 2027, driven by sustainable supply-base, design-to-value, and route-to-market transformation. The company also increased its cash dividend for the first quarter of fiscal 2024 by 5.9% to $0.36 per share compared to $0.34 per share paid in the first quarter of fiscal 2023.
The market has reacted to these announcements by moving the company's shares -5.9% to a price of $88.22. If you want to know more, read the company's complete 10-Q report here.
