Profile: Toro Co (TTC.N)
9 Dec 2013
The Toro Company (Toro), incorporated in 1935, designs, manufactures, and markets professional turf maintenance equipment and services, turf irrigation systems, agricultural micro-irrigation systems, landscaping equipment and lighting, and residential yard and snow removal products. The Company operates in three business segments: Professional, Residential, and Distribution. Its products are advertised and sold at the retail level under the names of Toro, Exmark, Irritrol, Hayter, Pope, Lawn-Boy and Lawn Genie. On June 24, 2011, the Company completed the acquisition of certain assets of Lawn Solutions Commercial Products, Inc. On January 17, 2011, Toro completed the acquisition of certain assets of Unique Lighting Systems, Inc. In February 2012, the Company acquired certain utility and underground product assets of Astec Underground, Inc., a wholly owned subsidiary of Astec Industries, Inc. In April 2012, it acquired light construction and hardscape product assets of Stone Construction Equipment, Inc. In October 2013, the Company acquired Xiamen Xiangfeng Water Saving Equipment Co., Ltd.
The Company designs professional turf, landscape, and agricultural products and markets them worldwide through a network of distributors and dealers, as well as directly to Government customers, rental companies, and retailers. These channel partners then sell its products to professional users engaged in creating and renovating landscapes, irrigating turf and agricultural fields, and maintaining turf, such as golf courses, sports fields, municipal properties, and residential and commercial landscapes.
Landscape Contractor Market
The Company’s products for the landscape contractor market include zero-turn radius riding mowers, heavy-duty walk behind mowers, mid-size walk behind mowers, stand-on mowers, turf cultivation equipment, compact utility loaders, walk-behind trenchers, and stump grinders. These products are sold through dealers and are available through rental centers to individuals and companies who maintain, create, and renovate residential and commercial landscapes on behalf of property owners. The Company markets products to landscape contractors under the Toro and Exmark brands. During the fiscal year ended October 31, 2011 (fiscal 2011), Toro introduced the Z Master G3 Commercial Series mower, featuring its TURBO FORCE cutting decks, unitized pump, and wheel motors. It also introduced the Exmark Pioneer E-Series and S-Series mowers, featuring a cutting deck design, and the Exmark Quest mower. The Company offers over 35 attachments for its compact utility loaders, including trenchers, augers, vibratory plows, and backhoes. In fiscal 2011, it acquired a line of turf renovation equipment, including aerators, seeders, power rakes, and brush cutters.
Sports Fields and Grounds Market
Products for the sports fields and grounds market include riding rotary mowers and attachments, aerators, and debris management products, which include versatile debris vacuums, blowers, and sweepers. Other products include multipurpose vehicles, such as the Toro Workman, that can be used for turf maintenance, towing, and industrial hauling. These products are sold through distributors, who then sell to owners and/or managers of sports fields, Governmental properties, and residential and commercial landscapes. In fiscal 2011, Toro introduced the Groundsmaster 360 Quad-Steer.
Golf Course Market
The Company’s products for the golf course market include reel and rotary riding products for fairway, rough and trim cutting; riding and walking mowers for putting greens and specialty areas; turf sprayer equipment; utility vehicles; aeration equipment; and bunker maintenance equipment. In fiscal 2011, it introduced the Greensmaster TriFlex and TriFlex Hybrid, the riding greens mower models. It also introduced the Toro Multi Pro 5800 turf sprayer, featuring spray accuracy, and new attachments. Toro also manufactures and markets underground irrigation systems, including sprinkler heads, controllers, turf sensors, and electric, battery-operated, and hydraulic valves. Its 835S/855S Series golf sprinklers are equipped with a TruJectory feature that provides water distribution control. Its Turf Guard wireless soil monitoring systems are designed to measure soil moisture, salinity, and temperature through buried wireless sensors that communicate through an Internet server for processing and presentation to a user through the Web. In fiscal 2011, it launched the R Series conversion assemblies that enable the upgrade of sprinklers to Toro technologies, such as its TruJectory sprinklers with adjustable height of spray capability.
Residential/Commercial Irrigation and Lighting Market
Turf irrigation products marketed under the Toro and Irritrol brands include rotors; sprinkler bodies and nozzles; plastic and brass valves; drip tubing and subsurface irrigation; electric and hydraulic control devices; and wired and wireless rain, freeze, and climate sensors. These products are designed to be used in residential and commercial turf irrigation systems that are installed into new systems or used to replace or retrofit existing systems. Most of the product lines are designed for underground automatic irrigation. Electric and hydraulic controllers activate valves and sprinkler bodies and nozzles in a typical irrigation system. In fiscal 2011, the Company introduced the intuitive Rain Master Eagle Plus control system and the Irritrol Climate Logic, a device that automatically updates irrigation system watering times based on a combination of historical and real-time weather data. It also launched a new version of its Precision Series Rotating Nozzles. Its retail irrigation products are marketed under the Toro and Lawn Genie brand names. These products are designed for homeowner installation and include sprinkler heads, valves, timers, and drip irrigation systems. Its ECXTRA sprinkler timers can be used with a home computer and its Scheduling Advisor recommends the proper watering schedule based on the local weather, plant type, and sprinkler. The Unique Lighting Systems acquisition includes the Signature, Odyssey, and Brass and Copper Knight series of products.
Products for the micro-irrigation market include products that regulate the flow of water for drip irrigation, including Aqua-Traxx PBX drip tape, Aqua-Traxx PC (pressure-compensating) drip tape, Blue Stripe polyethylene tubing, BlueLine drip line, and NGE emitters, all used in agriculture, mining, and landscape applications. In addition to these products, it offers control devices and connection options. These products are sold primarily through dealers and distributors who then sell to end users for use primarily in vegetable fields, fruit and nut orchards, vineyards, landscapes, and mines. In fiscal 2011, the Company introduced Aqua-Clear filters, a sand media filter for growers with small to medium-sized fields. Toro introduced a variety of system accessories, such as Layflat fittings and polyvinyl chloride (PVC) tubing.
The Company markets its residential products to homeowners through a variety of distribution channels, including outdoor power equipment dealers, hardware retailers, home centers, mass retailers, and over the Internet. These products are sold mainly in North America, Europe, and Australia, with the exception of snow removal products that are sold primarily in North America and Europe. The Company also licenses its trade name to other manufacturers and retailers on certain riding and home solutions products.
Walk Power Mower Products
The Company manufactures and markets a number of walk power mower models under its Toro and Lawn-Boy brand names, as well as the Pope brand in Australia and the Hayter brand in the United Kingdom. Toro also offers a line of rear-roller walk power mowers, a design that provides a striped finish, for the United Kingdom market.
The Company manufactures and markets riding products under the Toro brand name worldwide and under the Hayter brand name in the United Kingdom. Riding products primarily consist of zero-turn radius mowers. Lawn and garden tractor models are sold worldwide. In addition, its rear engine and direct-collect riding mowers are manufactured and sold in the European market. A number of models are available with a variety of engines, decks, transmissions, and accessories. In fiscal 2011, it introduced the TimeCutter SS zero-turn radius mower with its Smart Speed control system, which is designed to allow the operator to choose different ground speed ranges with the flip of a lever and without changing the blade or engine speed. The Company also introduced the TITAN MX mower.
Home Solutions Products
Toro designs and markets home solutions products under the Toro and Pope brand names, including electric and battery-operated grass trimmers, electric blower-vacuums, electric blowers, and electric snow throwers. In Australia, the Company also designs and markets underground and hose-end retail irrigation products under the Pope brand name.
Gas Snow Removal Products
The Company manufactures and markets a range of gas-powered single-stage and two-stage snow thrower models. Single-stage snow throwers are walk behind units with lightweight two- and four-cycle gasoline engines. Its two-stage snow throwers are designed for large areas of deep, heavy snow and use four-cycle engines. The Company’s two-stage snow throwers include a line of models featuring the Power Max auger system and the Quick Stick chute control technology.
8111 Lyndale Avenue South
BLOOMINGTON MN 55420-1196