Toro 2013 Annual Report Download - page 4

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they will continue to seek ways to reduce operational
costs and look to our innovative products to help increase
productivity and manage expenditures. In addition, we
are optimistic about new golf course development in key
international markets.
The landscape contractor and grounds markets delivered
solid results in fiscal 2013. Our landscape contractor
customers drove strong retail activity throughout the year,
especially in the professional zero-turn product category.
Tax-supported professional grounds customers benefited
from improved revenues and looked to our wide array of
products for greater productivity. Our rental and
construction customer base continued to grow on the
strength of our new Toro-branded underground products
and expanded rental offerings. With commercial and
residential construction investment projected to expand
in 2014, the outlook for growth for these markets looks
similarly strong.
Increasing demand for more efficient irrigation solutions
for agriculture drove growth in the micro irrigation
market in fiscal 2013. We benefited from additional
manufacturing capacity to meet higher demand for our
products, and we expanded our global footprint for this
market with our China micro-irrigation acquisition.
In our residential business, which is more immediately
affected by the weather, sales were down slightly for the
year. Reduced preseason demand for snow products
in early fiscal 2013, and unfavorable spring weather at
the beginning of the key selling season, both detracted
from the annual segment results. On a positive note,
more consumers are changing from traditional front-
engine riders to our zero-turn riding mowers, including our
innovative TimeCutter® line. Additionally, we saw higher
demand for our handheld trimmer and blower products in
the U.S., as well as for our Pope-branded irrigation
products in Australia. If Mother Nature is cooperative, we
believe we are poised for market success in fiscal 2014
with a number of new product offerings, increased
product placement and strong marketing programs.
Investments in innovation
Since 1914, innovation has been the lifeblood of this
company. In fiscal 2013, our new product offerings
continued to help us defend and grow our market
positions across our businesses.
For example, we introduced our new Reelmaster® 3550-D,
the lightest fairway mower in the industry. With a productive
82-inch cutting width, and weighing less than 2,000
pounds, this machine is gentle on turf and delivers an
outstanding quality of cut.
For the third year in a row, we earned a new product
contest award from the Irrigation Association—this
time for our new Toro® EVOLUTION® irrigation controller.
With an intuitive interface and exclusive features for
upgrading to “smart” control, the EVOLUTION controller
is an easy choice for residential and light-commercial
irrigation applications.
For our landscape and grounds customers, our new
Horizon™ technology on Toro® Z Master® electronic fuel
injected models, and our RED™ equipped Exmark® Lazer Z®