THE TORO COMPANY EXPECTS FIRST QUARTER LOSS TO EXCEED LOSS IN YEAR-AGO QUARTER
THE TORO COMPANY EXPECTS FIRST QUARTER LOSS
TO EXCEED LOSS IN YEAR-AGO QUARTER
BLOOMINGTON, Minn., Nov. 7 /PRNewswire/ -- The Toro Company (NYSE: TTC) said today it expects the net loss for its first quarter ended Nov. 1, 1991, will exceed the net loss of 47 cents per share in the first quarter ended Oct. 26, 1990, citing an unexpected warranty problem involving an irrigation sprinkler head.
The company also said it expects a decline in sales for the quarter vs. the year-ago quarter. A sluggish economy and weakened consumer confidence continue to keep retail demand for its lawn and garden and irrigation products at lower-than-anticipated levels, the company said. Because of the economic uncertainties, homeowners remain reluctant to spend on consumer durables and dealers are carrying less inventory.
Toro Chairman and Chief Executive Officer Kendrick B. Melrose reported that the irrigation warranty problem, which will necessitate an extensive field inventory replacement, caused a one-time cost of approximately $2.0 million in the first quarter. On the positive side, Melrose said the company received a similar amount from a license settlement related to its patented trimmer technology.
The Toro Company is the world's leading independent manufacturer and marketer of outdoor maintenance and beautification equipment.
For further information on Toro simply dial 800-PRO-INFO and enter the number 154.
/CONTACT: Dennis Himan, 612-887-8411 or Stephen D. Keating, 612-887-8526 of the Toro Company; Fred Nachman of FRB-Chicago, 312-266-7800 or Kathy Phelan, 212-661-8030 of FRB-New York/
(TTC) CO: Toro Company ST: Minnesota IN: MAC SU: DS-KH -- MN005 -- 2134 11/07/91 10:34 EST