“We are pleased to announce record earnings for fiscal 2016, driven by consistent performance and growth in our professional businesses,” said Richard M. Olson, Toro’s president and chief executive officer. “New product introductions across the portfolio were favorably received and we made notable progress in reducing our inventory levels. Despite challenges presented by negative currency conditions and a lack of in-season snowfall, we benefitted from solid demand for our golf equipment and irrigation products and we gained share in those markets. Similarly, we saw increased momentum in our landscape contractor, specialty construction and rental businesses due to the success of new products such as the TITAN HD zero turn mower and the Dingo TX 1000.”
Professional segment net sales for fiscal 2016 totaled $1.705 billion, up 4.0 percent from $1.640 billion last year. Solid demand for our golf equipment, Toro branded landscape contractor equipment, as well as the success of the Dingo TX 1000 contributed to the growth for the year. For the fourth quarter, professional segment net sales were $343.5 million, up 5.6 percent from the comparable fiscal 2015 period. The growth was driven largely by the strong demand for golf products. Professional segment earnings for fiscal 2016 totaled $352.1 million, up 14.3 percent from $308.0 million from the prior year. For the fourth quarter, professional segment earnings were $59.7 million, up from $49.3 million in the comparable fiscal 2015 period.
Residential segment net sales for fiscal 2016 were $669.1 million, down 7.8 percent from $725.7 million last year. Mild in-season winter conditions paired with a soft snow pre-season to wrap up the fiscal year are the main contributors to the decline. For the fourth quarter, residential segment net sales were $118.8 million, down 19.2 percent from the comparable fiscal 2015 period. Residential segment earnings for fiscal 2016 totaled $73.7 million, down 13.3 percent from fiscal 2015. For the fourth quarter, residential segment earnings were $9.2 million, down from $15.8 million in the comparable fiscal 2015 period.