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$TTC said 2Q16 Residential segment sales decreased 11.1% to $238.2MM. The decline was mainly due to lower channel demand for zero turn riders, somewhat offset by increased demand for walk power mowers, driven by new products. Residential segment earnings in 2Q16 totaled $35MM, up 0.4% from last year.
$TTC said Michael Hoffman will retire as the company’s Chairman of BoD, effective Nov 3, 2017. President and CEO, Richard Olson, has been elected chairman, effective upon Hoffman’s retirement. In connection with Hoffman’s retirement, the board size will be reduced from 11 to 10 directors, effective Nov 3, 2017.
$TTC anticipates golf equipment business to continue strong momentum throughout the year as interest remains high in products that was launched in 2016. The company also expects sales to pick up in residential, commercial, irrigation and lighting businesses as weather shifts to more normal pattern.
$TTC completed purchase of privately-held Regnerbau Calw, a manufacturer of professional irrigation equipment. Regnerbau manufactures a variety of irrigation products under the Perrot brand, including retractable sprinklers for sports fields, impact sprinklers and coupling systems for agricultural fields, and rain guns for industrial applications.
$TTC returned about $178MM to shareholders through the payment of $65.9MM in dividends and the repurchase of about 2.7MM shares of common stock. The company experienced increased momentum in its landscape contractor, specialty construction and rental businesses due to the success of TITAN HD zero turn mower and the Dingo TX 1000 products.
$TTC's pre-season demand for snow and ice management products was affected by the lack of snowfall last winter, while mild autumn conditions extended the growing season, which benefitted its turf maintenance businesses. The company is committed to growth and profitability, while maintaining focus on working capital management.
$TTC expects FY17 revenue to grow about 3-4% and net earnings to be about $2.20-2.26 per share. Depreciation and amortization is expected to be $65MM. Gross margin is expected to be at the similar margin of about 36.6% and effective tax rate is expected to be about 29%.
$TTC's Professional segment net sales were $343.5MM, up 5.6% from a year ago, driven largely by the strong demand for golf products paired with favorable weather conditions. Residential segment sales were down 19.2% to $118.8MM, hurt by a decrease in residential snow products sales.
$TTC sees FY17 revenue growth to be about 3-4% and EPS of about $2.20-2.26. For 1Q17, $TTC sees EPS to be about $0.34-0.36. With FY17 already underway, $TTC remains committed to delivering innovative products and serving customers across its businesses. Recent weather patterns appear promising, and $TTC is encouraged by resulting retail activity.
Landscaping, maintenance and irrigation equipment maker $TTC reported rise in 4Q16 earnings as favorable commodity costs and enhanced productivity as well as segment mix contributed to increases in gross margin. Net income rose to $30.23MM or $0.27 per share from $23.55MM or $0.21 per share last year. Net sales fell to $468.36MM from $480.81MM.