Toro 2015 Annual Report Download - page 3

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Fiscal 2015 was another good year for The Toro Company,
as we delivered record results for revenues, operating
earnings, net earnings and earnings per share. We
increased net sales by 10 percent to $2.4 billion despite
unfavorable foreign currency exchange rates, expanded
operating earnings to $299.1 million and achieved net
earnings of $201.6 million or $3.55 per share. In
addition, we returned over $160 million to shareholders
through the payment of $55.5 million in dividends and
the repurchase of more than 1.5 million shares of
common stock.
Furthermore, our growth in 2015 was well-balanced with
strong contributions from our new BOSS® professional
snow and ice management business, our core residential
and landscape contractor businesses, and our newer
rental and specialty construction business.
The dedication, drive and hard work of each member of
our enterprise helped us complete what was the first
year of both our Destination PRIME journey and our
second century, in this record-setting fashion. I am truly
appreciative of the team’s outstanding eorts and proud
of our employees’ noteworthy accomplishments.
End markets
The Company’s success this year was the result of
solid performances across our professional and
residential businesses.
The new BOSS professional snow and ice management
business capitalized on last season’s snowfall in the first
quarter and robust preseason demand in the third and
fourth quarters. Additionally, the successful launch of
several innovative new products in fiscal 2015 helped
fuel BOSS’s strong results in its inaugural year as part of
The Toro Company.
Our landscape contractor businesses benefitted from
increased demand for our full range of mowing, aerating
and new spreader/sprayer equipment lines with
professional contractors drawn to the increased
productivity these machines provide.
Retail demand for golf equipment grew nicely for the
year. Despite weather challenges this past spring, the
industry saw an improvement in golf rounds played that
helped increase course revenues, leading to capital
investments in both course renovation projects and
equipment acquisition.
Like golf course operations, state and local governments
experienced larger budgets, allowing them to replenish
their equipment fleets and upgrade irrigation systems.
As a result, our sports fields and grounds business
continued to benefit from these increased expenditures.
This, combined with our expanded presence on state and
local governmental and other cooperative contracts,
helped grow the business in fiscal 2015.
Positive construction trends and new product launches
helped our rental and specialty construction business
To our valued shareholders,
Michael J. Homan,
Chairman and Chief Executive Ocer