Toro 2014 Annual Report Download - page 5

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Another new product, our Recycler® walk-behind mower
with all-wheel-drive, is generating early interest.
Finally, now that we have completed most of the
engineering changes to our large equipment models
relating to the Tier 4 diesel engine emission
requirements, we can redirect more of our research
and engineering investments to new product
development. As a result, in the years ahead, we look
forward to delivering an even greater number of
innovative products that help provide needed
solutions for our customers.
Outlook
Reflecting back on an amazing centennial year, and all
that was accomplished, makes me very grateful to be
associated with such a terrific team. We embark on our
second century with confidence and optimism as we
look ahead to fiscal 2015. While there are no guarantees
of favorable weather or better economic conditions,
we will continue to focus on those things we can
control—developing innovative products and services
and serving our customers.
Also fueling our excitement is our recently acquired
BOSS professional snow and ice management
business, which extends our presence in the
professional contractor and municipal markets and
supports our growth goals in a meaningful way.
We believe that BOSS aligns extremely well with our
company from both business and cultural perspectives,
which is critical to future success.
Finally, as famed author Mark Twain is credited with
saying, “if you stand still, you will fall behind.” In that
spirit, we recently launched our next multi-year
employee initiative—Destination PRIME—which reflects
a continued focus on a world of opportunities for us.
The three-year goals of Destination PRIME are to
increase organic net sales by at least 5 percent each
year, achieve operating earnings of 13 percent or higher
by the end of fiscal 2017, and drive average net working
capital down to 13 percent or lower by the end of fiscal
2017. PRIME also will serve as an acronym highlighting
our focus on Productivity, Relationships and Innovation,
which will help to generate Momentum in our pursuit of
Excellence in all we do. We believe achieving these goals
will bolster our ongoing drive to serve our customers
and deliver superior shareholder value.
On behalf of our Board of Directors and employees, I
want to thank all of you, our shareholders, for your
continued trust in The Toro Company.
Sincerely,
Michael J. Homan
Chairman and Chief Executive Ocer