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TORO REPORTS RESTRUCTURING CHARGE OF $15 MILLION; SECOND QUARTER EARNINGS

 TORO REPORTS RESTRUCTURING CHARGE OF $15 MILLION;
 SECOND QUARTER EARNINGS
 BLOOMINGTON, Minn., Feb. 20 /PRNewswire/ -- The Toro Company (NYSE: TTC) today reported a net loss in the second quarter of fiscal 1992. The loss includes a pretax charge of $15 million (85 cents per share after tax) associated with the restructuring of the company's consumer products business.
 For the second quarter ended Jan. 31, 1992, Toro reported a net loss of $11.9 million or $1.00 per share vs. net earnings of $8.1 million or 68 cents per share in the year-ago quarter. Sales in the second quarter of fiscal 1992 were $159.3 million, down 15 percent from $187.8 million in the second quarter of fiscal 1991. Toro Chairman and Chief Executive Officer Kendrick B. Melrose said sales reflected a continuing depressed economy.
 For the six-month period, Toro recorded a net loss of $18.1 million or $1.51 per share. That compares to net earnings of $2.5 million or 21 cents per share for the year-ago period. Sales for the first six months of fiscal 1992 were $275.8 million vs. $317.1 million for the same period a year ago, a decline of 13 percent.
 Toro announced a major restructuring of its consumer product business in January, and expenses associated with the restructuring were estimated to be about $9.5 million. Melrose said the revised estimate includes additional reserves for inventory, plant and equipment and further workforce reductions.
 The company said that the restructuring is aimed at significantly improving the long-term competitiveness and profitability of its consumer products. It consolidates all of the company's consumer manufacturing, marketing and administrative functions into one organization, resulting in plant closings and significant staff reductions in the consumer business segment.
 Toro reported total consumer product sales were down 18 percent in the quarter vs. the year-ago quarter. It cited lingering softness in consumer durables markets and consumers' reluctance to purchase high- ticket items as the primary reasons for the decline.
 Worldwide irrigation sales fell 18 percent in the quarter compared to the year before, the company said. Toro said that U.S. sales showed a decline of nearly 24 percent vs. the same period last year and attributed much of that to depressed sales in California, Texas and Florida. Overseas demand for Toro irrigation products remained good, reflecting a continued strong golf market.
 The company reported a 7 percent decrease in commercial product sales worldwide, primarily due to softness in its European non-golf markets. Melrose said that Toro's innovative, high-performing commercial products, supported by strong programs and services, continue to give the company a competitive edge in golf and non-golf markets worldwide.
 "I am hopeful that the bad news is behind us," said Melrose. "We believe that as our industry begins to emerge from a prolonged recessionary environment the investments we have continued to make in new products and customer service, combined with our solid balance sheet and cash flow position, will work favorably for us."
 Melrose said that the company has maintained a strong financial position throughout the recession and other adversities beyond its control while making extensive investments in the company's future, including new product development and acquisitions.
 The Toro Company is the nation's largest independent manufacturer and marketer of outdoor maintenance and irrigation equipment.
 To receive The Toro Company's latest news release and other corporate documents, free of charge via fax, simply dial 1-800-PRO-INFO.
 Use company code 154. The Toro Company, 8111 Lyndale Ave., South Bloomington, Minn., 55420.
 -0- 2/20/92
 /CONTACT: Dennis Himan, 612-887-8411; Stephen D. Keating, 612-887-8526, both of Toro; Fred Nachman, 312-266-7800; Kathy Phelan, 212-661-8030, both of the Financial Relations Board for Toro/
 (TTC) CO: The Toro Company ST: Minnesota IN: SU: ERN


AL -- MN003 -- 0840 02/20/92 10:21 EST
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Date:Feb 20, 1992
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