Toro 2012 Annual Report Download - page 4

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In our residential business, which is more immediately
impacted by swings in weather, sales were down for the year.
Poor snowfall last winter, and a severe drought throughout
much of the United States this summer, detracted from
strong spring sales results. While sales of snow products
were down in fiscal 2012, we are well positioned with a
strong snow thrower line to capitalize on new sales opportu-
nities if normal snowfall returns. On another positive note,
Toro saw its sales of walk power mowers and riding products
increase against the industry trend. Toro remains committed
to delivering innovative products for our residential custom-
ers in partnership with dealers and The Home Depot® to grow
this segment.
Our micro-irrigation business expanded as growers, looking
for ways to increase efficiencies and yields, became more
aware of Toro’s innovative products. Investments in produc-
tion capacity, including our new plant in Romania, will enable
Toro to serve a growing customer base.
Investments in innovation
Toro’s growth continues to be fueled by our relentless pursuit
of customer-valued innovation, represented in a number of
exciting new products across our many businesses.
A few examples include our new Toro® TimeMaster™ that
saves customers time by cutting a 30-inch swath without
sacrificing quality of cut or ease of maneuverability. This new
product category helped our residential walk power mower
line outpace the industry.
The rollout of the Toro® Greensmaster® eFlex® golf greens
mower, the industry’s first lithium-ion battery powered
greens mower, generated enthusiasm and can now be found
manicuring greens, tees and surrounds at premier courses
around the world.
The introduction of a number of new products, like our FLEX™
Series LED “drop-in” lamps, increased sales of our Unique
Lighting products. The Exmark® stand-on aerator, another
recent acquisition-related introduction, was a welcome
time-saving and revenue-generating addition to landscape
contractor fleets.
We also brought our industry-leading soil sensing technology
to homeowners with the new Precision™ Soil Sensor—the
Irrigation Association’s “Best New Product” winner, which is
helping customers conserve on both their water usage and
utility bills. And, we are just getting started solving a major
worldwide problem—moving from irrigation systems that run
on clocks to sensor technologies that water only when needed.
Relationships
We pride ourselves on developing long-term relationships with our custom-
ers, built on integrity and trust. In 2012, we proudly served many of golfs’
leading courses as they hosted premier events including: The Olympic Club
in San Francisco, site of this year’s U.S. Open; South Carolina’s Kiawah
Island Golf Resort, home of the 2012 PGA Championship; and Medinah
Country Club, where the Ryder Cup was held in late September. We also
were honored this past year to extend our partnership with St Andrews Links
Trust in Scotland, and support the All England Club and Glasgow’s Hampden
Park, sites for the 2012 London Olympics—and many other professional and
collegiate venues around the world.