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THE TORO COMPANY REPORTS FIRST QUARTER RESULTS

 BLOOMINGTON, Minn., Nov. 19 ~PRNewswire~ -- The Toro Company (NYSE: TTC) today reported a stronger first quarter performance with a lower net loss compared to the first quarter of fiscal 1992. Toro Chairman and Chief Executive Officer Kendrick B. Melrose said, "The steps we have taken to improve competitiveness and profitability -- including restructuring of our consumer and irrigation product businesses, aggressive cost reduction initiatives and lower price points for much of our lawn and garden line -- began to show positive results in the quarter."
 For the first quarter ended Oct. 30, 1992, Toro reported a net loss of $4.1 million, or 34 cents per share, vs. a net loss of $6.2 million, or 51 cents per share, in the first quarter of fiscal 1992. Sales in the first quarter of fiscal 1993 were $113.4 million, down from $116.5 million in the first quarter last year.
 "We are encouraged by the significantly lower loss compared to the year-ago quarter on a 3 percent sales decline," said Melrose. "Moreover, it was our intention to manage down our consumer product field inventories in the quarter in anticipation of key new product introductions planned for the spring of 1993. Thus, the decline in sales was expected."
 The company said its Commercial Division continued to show strong performance in the quarter, with sales rising more than 8 percent compared to the year-ago quarter. Additionally, the division reported a very good back-order position, resulting from strong acceptance of products introduced during the last 12 to 18 months and low field inventories. "Continued strong demand worldwide for our commercial products is further evidence of both Toro's leadership in the commercial markets it serves and the resiliency of those markets to economic swings and changing weather patterns," Melrose said.
 Irrigation products met expectations for the quarter, the company reported. The 19 percent increase in sales compared to a relatively weak year-ago first quarter, and the increase was primarily due to improved demand and lower field inventories compared to a year ago, it said.
 Melrose said overall consumer product sales were down about 13 percent in the first quarter vs. the year-ago quarter. He attributed the decline primarily to the company's conscious effort to reduce field inventories on some key Toro and Lawn-Boy products in anticipation of key new product introductions this spring. "In the face of that effort, Lawn-Boy products still showed strong performance reflecting benefits from an aggressive promotion implemented late in fiscal 1992 and acceptance of our more competitive Lawn-Boy offerings," Melrose said. "We are encouraged by the retail movement and we believe the momentum will carry over to our new mid-priced models for 1993. Moreover, we are heartened by the increased confidence at the distribution level evidenced by our good consumer order patterns."
 Melrose said that even though the economy was not robust, the company was generally pleased with its performance in the quarter. The balance sheet remained strong, cash flow and liquidity continued to improve from an already solid cash position, and the lower loss reaffirmed that the strategic actions taken in fiscal 1992 were both correct and essential to long term profitability, he reported.
 "Perhaps most importantly, our employees, who represent our largest single group of stockholders and our most valuable asset, have rededicated themselves to making or exceeding Toro's turnaround plan for fiscal 1993," Melrose concluded.
 The Toro Company is the leading provider of lawn and turf care products for residential and commercial markets.
 To receive The Toro Company's largest news release and other corporate documents, free of charge via fax, simply dial 1-800-PRO-INFO. Use company code 154.
 -0- 11~19~92
 ~CONTACT: Dennis Himan, V.P.~treasurer, 612-887-8411, or Stephen D. Keating, assistant treasurer, 612-887-8526, both of The Toro Company; or Fred Nachman, 312-266-7800, or Karen Griffiths, 212-661-8030, both of the Financial Relations Board, for The Toro Company~
 (TTC)


CO: The Toro Company ST: Minnesota IN: SU: ERN

AL -- MN004 -- 2795 11~19~92 10:40 EST
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Date:Nov 19, 1992
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