Toro Co.'s earnings declined 37.5% in the first quarter as the Bloomington-based company continues to deal with supply-chain challenges.
"Demand across our businesses remained robust, while supply-chain constraints and inflationary pressures continued," Richard Olson, Toro's chief executive, said in a news release.
Olson said the maker of outdoor maintenance and construction equipment already is seeing conditions improve.
"We do expect the current supply-chain dynamics to resolve over time and are beginning to see some signs of improvement," Olson told analysts.
Still, while conditions surrounding the supply chain and COVID-19 are easing, the company did not feel comfortable raising its guidance for the year, officials said. Toro expects adjusted earnings to be between $3.90 and $4.10 a share for the fiscal year.
For the quarter ended Jan. 28, sales increased 7% to $933 million. Earnings were $69.5 million, or 66 cents a share, compared with $111.3 million, or $1.02 a share, in the same period last year.
In the quarter, Toro acquired for $400 million the Intimidator Group, a maker of zero-turn mowers, that will become part of its professional segment. Company officials mentioned in a conference call with analysts that the maker of Spartan brand mowers faced some of the same supply-chain constraints as Toro did, but will soon benefit from the increased scale and supply-chain expertise that it gets by joining Toro.
Toro also introduced its GeoLink Solutions Autonomous Fairway Mower at a recent industry trade show and a new battery-powered materials handling machine for indoor construction markets at a different trade show with good reception for each.
