Toro 2010 Annual Report Download - page 9

PART I
brands and product portfolio. Our mission is to be the leading
ITEM 1. BUSINESS
worldwide provider of outdoor landscaping products, support ser-
vices, and integrated systems that help customers preserve and
Introduction
beautify their outdoor landscapes with environmentally responsible
The Toro Company was incorporated in Minnesota in 1935 as a
solutions of customer-valued quality and innovation.
successor to a business founded in 1914 and reincorporated in
Delaware in 1983. Unless the context indicates otherwise, the
Products by Market
terms ‘‘company,’’ ‘‘Toro,’’ ‘‘we,’’ ‘‘us,’’ and ‘‘our’’ refer to The Toro
We strive to be a leader in adapting advanced technologies to
Company and its consolidated subsidiaries. Our executive offices
products and services that provide solutions for landscapes, agri-
are located at 8111 Lyndale Avenue South, Bloomington, Minne-
cultural fields, turf care maintenance, and residential demands. The
sota, 55420-1196, telephone number [phone]. Our Internet
following is a summary of our products, by market, for the profes-
address for corporate and investor information is
sional segment and our products for the residential segment:
www.thetorocompany.com, which also contains links to our
branded product sites. The information contained on our web sites Professional – We design professional turf and agricultural prod-
or connected to our web sites is not incorporated by reference into ucts and market them worldwide through a network of distributors
this Annual Report on Form 10-K and should not be considered and dealers as well as directly to government customers, rental
part of this report. companies, and large retailers. Products are sold to professional
We design, manufacture, and market professional turf mainte- users engaged in creating landscapes, irrigating turf and agricul-
nance equipment and services, turf and agricultural micro-irrigation tural fields, and maintaining turf, such as golf courses, sports
systems, landscaping equipment, and residential yard and snow fields, municipal properties, and residential and commercial
removal products. We produced our first mower for golf course use landscapes.
in 1921 when we mounted five reel mowers on a Toro tractor, and
Landscape Contractor Market. Products for the landscape con-
we introduced our first lawn mower for residential use in 1935. We
tractor market include zero-turn radius riding mowers, heavy-duty
have continued to enhance our product lines ever since. We clas-
walk behind mowers, mid-size walk behind mowers, stand-on
sify our operations into three reportable business segments: Pro-
mowers, compact utility loaders, walk-behind trenchers, and stump
fessional, Residential, and Distribution. Our distribution segment,
grinders. These products are sold through dealers and are also
which consists of our company-owned domestic distributorships,
available through rental centers to individuals and companies who
has been combined with our corporate activities and is shown as
maintain and create residential and commercial landscapes on
‘‘Other.’’ Net sales of our three reportable segments accounted for
behalf of property owners. We market products to landscape con-
the following percentages of our consolidated net sales for fiscal
tractors under the Toro and Exmark brands. In fiscal 2010, we
2010: Professional, 64 percent; Residential, 35 percent; and Other,
expanded the Toro GrandStand series of stand-on mowers to
1 percent.
include two new compact models for smaller properties. In fiscal
Our products are advertised and sold at the retail level under the
2010, we also introduced the Exmark Vantage premium stand-on
primary trademarks of Toro, Exmark, Irritrol, Hayter, Pope,
mower, featuring our UltraCut Series 4 cutting deck, versatile
Lawn-Boy, and Lawn Genie, most of which are registered in the
fold-up platform, and fatigue-reducing suspension.
United States and/or in the primary foreign countries where we
Our compact utility loaders are cornerstone products for the Toro
market such products. This report also contains trademarks, trade
Sitework Systems product line, which are designed to improve effi-
names, and service marks that are owned by other persons or
ciency in the creation of landscapes. We offer over 35 attachments
entities, such as The Home Depot.
for our compact utility loaders, including trenchers, augers, vibra-
We emphasize quality and innovation in our products, customer
tory plows, and backhoes. In fiscal 2010, we acquired a line of
service, manufacturing, and marketing. We strive to provide
stump grinders, wood chippers, and log splitters to broaden and
well-built, dependable products supported by an extensive service
strengthen our equipment solutions line for the rental and land-
network. We have committed funding for engineering and research
scape markets. In fiscal 2010, we introduced the STX Stump
in order to improve existing products and develop new products.
Grinder, featuring a stable yet maneuverable track drive design
Through these efforts, we seek to be responsive to trends that
and the same easy-to-use control system as the Toro Dingo TX.
may affect our target markets now and in the future. A significant
portion of our revenue has historically been, and we expect it to Sports Fields and Grounds Market. Products for the sports
continue to be, attributable to new and enhanced products. At the fields and grounds market include riding rotary mowers and attach-
same time, we plan to pursue targeted acquisitions using a disci- ments, aerators, and debris management products, which include
plined approach that adds value while considering our existing
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