business

The Toro Co. posted record revenue for its 2011 fiscal year on Tuesday, as sales to agricultural, golf and landscaping contractors rebounded from the recession.

The Bloomington-based company also reported a jump in snowblower shipments after rough weather hit many of its markets last winter.

Overall sales jumped 11.5 percent to $1.9 billion, and executives pointed out that the company is on the threshold of its first $2 billion year -- after battling back from almost a 20 percent revenue drop in 2009.

"While uncertainty remains in the global economy, we look forward to the year ahead with a sense of cautious optimism," Chief Executive Michael Hoffman said on a conference call with analysts.

Still, the company's shares dipped about 1.5 percent as Toro forecast earnings for next year's first quarter slightly below analysts' estimates.

For its fiscal fourth quarter, through Oct. 31, Toro said it earned $5 million, or 16 cents per share, on sales of $368.1 million. That compares with earnings of $3.2 million, or 10 cents a share, on sales of $337.3 million for the same period last year. Analysts had projected earnings-per-share of 9 cents for the quarter.

The company said annual earnings were up 26 percent to $117.7 million, or $3.70 a share.

James Lucas, an analyst at Janney Capital Markets, maintained his "buy" rating on the stock. "We must now await the upcoming spring selling season," Lucas wrote in a research note. "But Toro is well-positioned entering the new year."

Toro shares closed at $56.88 a share, down 84 cents for the day.

The company is forecasting earnings of 58 cents per share for the 2012 first quarter. That's better than the 53 cents a share earned in the first quarter of 2011 but lower than analysts' estimates of 62 cents a share.

Its 2012 full-year guidance of $4.15 a share is higher than analysts' forecast of $3.98 a share.

Toro's professional segment, which sells products to the agricultural, golf and landscape contracting markets, turned in a strong performance, with full-year sales up 14.2 percent over last year. The segment now represents nearly two-thirds of total sales.

Executives cautioned, however, that much of the growth represented the return of customers who had cut back or gone away during the recession. Therefore, they expect the growth to slow down.

"The reality is that the professional business contracted 26 percent in '09," Hoffman said. "So a significant part of what's happened in '10 and '11 is what I call a kind of structural recovery."

Residential sales continued to benefit from last year's snowy winter as dealers re-stocked depleted snowblower inventories. The gains offset lower sales of walk power mowers and electric blowers. Sales for the segment were up 5.8 percent from 2010.

"Last year's great snow season left the channel relatively clean," Hoffman said. "Pre-season sales have been exceptionally strong, and we have been pressured to stay ahead of demand even though we started production earlier than normal."

Star Tribune staff writer Susan Feyder contributed to this report.

David Shaffer • 612-673-7090