Toro 2008 Annual Report Download - page 6

Building on Toro’s long history
of innovation in drip irrigation,
Aqua-Traxx™ PBX delivers an
unparalleled level of precision and
fl exibility. With unique precision-
molded emitters, Aqua-Traxx PBX
enables growers to apply the exact
amount of water needed to produce
a uniform crop without over-irrigating.
In fact, top farmers around the world
count on Aqua-Traxx premium drip
tape to grow the world’s food supply.
Engineered to tackle any
snowfall, the Toro® Power Clear™
single-stage snowthrower packs
a powerful winter punch. With
amazing new features like the
innovative Quick Shoot™ control
system that throws 1,800 pounds
of snow per minute up to 35 feet
away, this machine is strong
enough for the job, yet light
enough for anyone to handle.
We will continue to invest in the areas that have contributed
to our historic success. New product innovation has and will
continue to be the lifeblood of our company, and we have a
long list of new offerings our customers are eagerly anticipating
in fi scal 2009. The coming season will be an exciting one for us
as we introduce our next-generation zero-turn mowers for the
Toro and Exmark brands. We also expect that a new platform of
walk power mowers under both the Toro and Lawn-Boy brands
will enable us to drive share gains in our residential business.
And, customers are anxiously awaiting delivery of our new
Precision™ Series Spray Nozzles, recently awarded the “2008
New Product of the Year” by the Irrigation Association.
Beyond our innovative new products, other key priorities we
will focus on as we manage our business through this diffi cult
environment include:
■ Driving retail sales to maintain or grow market share by
continuing to earn our customers’ trust and business with
equally innovative programs and services.
■ Aggressively managing costs by scrutinizing proposed
expenditures, adjusting our cost structure, and making
wise long-term investments where appropriate.
■ Driving down our working capital as a percent of sales to
free up cash to invest for future growth opportunities and
to deliver value to shareholders.
I am pleased to share another accomplishment that speaks
to a fundamental company philosophy and guides everything
we do. John Samuel Clapper, Toro’s founder and fi rst president,
once wrote, “Reputation is achieved only by constant and
continuous sincere effort, frowning upon methods which are
temporarily lucrative, while cultivating business ethics which
are cherished by those with whom we deal.” Our commitment
to ethical practices is refl ected in our way of doing business
and, as Clapper suggested, is truly prized by all of those
with whom we have the honor of working — from customers,
suppliers and other stakeholders in The Toro Company. I mention
this because earlier this year we received the 2008 Minnesota
Business Ethics Award, presented by the Center for Ethical
Business Cultures. This recognition was especially gratifying
because it refl ects our employees’ ongoing commitment to
ensuring that at Toro, ethics is far more than corporate policy
— it’s a way of life.
At Toro we have good reason to look forward with confi dence.
We have, as a company, weathered tough times before. Each
time, we have pulled together and emerged stronger and more
resilient than ever. Personally, I am proud of our team and all
that we have accomplished together. I believe in our people
and their dedication to serving customers and living out our
Toro values every day. I believe in our channel partners and
their desire to work with us to adapt to the changing needs
within our various markets around the globe. And, I believe
in our customers and the trust they instill in our strong family
of brands to help ensure their success.
Sincerely,
Michael J. Hoffman
Chairman and CEO
Fiscal 2008 Net Sales by Market Residential: 30%
Lawn & Garden: 26%
Feature-rich and dependable products include zero-
turn radius riding mowers, walk-behind mowers,
irrigation solutions and hand-held equipment.
Snow: 4%
A complete line of rugged, dependable, and
powerful gas and electric products.
Wholly-owned domestic distribution companies —
less sales from the professional and residential
segments to those distribution companies.
Landscape Contractor/Grounds: 33%
Durable and dependable turf products and irriga-
tion systems for creating and maintaining sports
fi elds, municipal properties, and residential and
commercial grounds.
Professional: 68%
Golf: 31%
Innovative mowing and grooming equipment, and
precision irrigation systems for maintaining beautiful
golf courses.
Micro Irrigation: 4%
Effi cient above-ground and sub-surface drip
irrigation systems to help growers save water and
improve crop yields.
Other: 2%