New strategy will best serve customers,
leverage world-class channel partners and position the company for
future growth
The Toro Company today announced that it is realigning the
organizational structure for its underground construction
businesses to better serve customers, maximize synergies and
streamline costs. The company intends to combine certain aspects of
the Ditch Witch, American Augers and Trencor businesses, all of
which were part of the Charles Machine Works acquisition announced
earlier this year. This realignment supports a streamlined approach
to the marketing, sales and service functions of those businesses
to more effectively support end customer needs.
“We continue to be very excited about the expertise, knowledge
and understanding of the underground business that the Charles
Machine Works companies bring to our organization,” said Rick
Rodier, group vice president, construction businesses at The Toro
Company. “Throughout the ongoing integration process, we continue
to be impressed by their market-leading position, strong product
portfolio and best-in-class channel. It is these factors that have
influenced our decision to concentrate on the Charles Machine
Works’ product portfolio and brands in the underground product
category going forward.”
In a related strategic move, the company has decided to wind
down its Toro-branded large horizontal directional drill and riding
trencher categories. With the addition of the Charles Machine Works
companies to The Toro Company family of brands, there are many
opportunities to leverage their strength in the underground market,
while maximizing efficiencies and cost benefits. These actions are
very much aligned with the broader integration plan and will allow
the company to rationalize its product offering in the underground
construction market quickly and efficiently. The Toro brand will
continue to serve the growing rental and specialty construction
markets with industry-leading Dingo® compact utility loaders,
concrete and masonry mixers, compaction equipment, and tree and
specialty turf products.
Since closing on the acquisition, integration and the resulting
synergies are progressing as planned. These strategic initiatives
have been put in place to generate even greater efficiencies, while
enabling the company to allocate resources to both the Toro and
Charles Machine Works brands effectively. The moves also align with
the company’s commitment to accelerating profitable growth, while
extending its legacy of excellence.
The Toro Company will address details of this press release and
answer related questions during its 2019 third quarter earnings
call and webcast for investors beginning at 10:00 a.m. CDT on
August 22, 2019. The webcast will be available at www.streetevents.com or at www.thetorocompany.com/invest.
About The Toro Company The Toro Company (NYSE: TTC) is a
leading worldwide provider of innovative solutions for the outdoor
environment including turf and landscape maintenance, snow and ice
management, underground utility construction, rental and specialty
construction, and irrigation and outdoor lighting solutions. With
sales of $2.6 billion in fiscal 2018, The Toro Company’s global
presence extends to more than 125 countries through a family of
brands that includes Toro, Ditch Witch, Exmark, BOSS Snowplow,
American Augers, Subsite Electronics, HammerHead, Trencor, Unique
Lighting Systems, Irritrol, Hayter, Pope, Lawn-Boy, MTI Equipment
and Radius HDD. Through constant innovation and caring
relationships built on trust and integrity, The Toro Company and
its family of brands have built a legacy of excellence by helping
customers care for golf courses, sports fields, construction sites,
public green spaces, commercial and residential properties and
agricultural operations. For more information, visit www.thetorocompany.com.
Forward-Looking Statements This release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act and Section 21E of the Exchange Act, and that are
subject to the safe harbor created by those sections. In addition,
Toro or others on its behalf may make forward-looking statements
relating to the underground construction business strategy from
time to time in oral presentations, including telephone conferences
and/or web casts open to the public, in press releases or reports,
on our web sites or otherwise. Statements that are not historical
are forward-looking and reflect expectations and assumptions.
Forward-looking statements are based on Toro’s current expectations
of future events, and often can be identified in this release and
elsewhere by using words such as "expect," "strive," "looking
ahead," "outlook," "guidance," "forecast," "goal," "optimistic,"
"anticipate," "continue," "plan," "estimate," "project," "believe,"
"should," "could," "will," "would," "possible," "may," "likely,"
"intend," "can," "seek," "potential," "pro forma," or the negative
thereof and similar expressions or future dates. Some of the
forward-looking statements in this release include efficiency
gains, cost savings, and synergy enhancements anticipated as a
result of the new underground construction business strategy.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those
projected or implied. The following are some of the factors known
to Toro that could cause Toro’s actual results to differ materially
from what Toro has anticipated in its forward-looking statements:
delays in implementing the new underground construction business
strategy; the failure by Toro to achieve any cost or revenue
synergies expected from such strategy or delays in the realization
thereof; business disruption during the pendency of or following
the implementation of such strategy; and unanticipated charges that
may be incurred in connection with such actions. For more
information regarding these and other uncertainties and factors
that could cause Toro’s actual results to differ materially from
what it has anticipated in its forward-looking statements or
otherwise could materially adversely affect its business, financial
condition or operating results, see Toro’s most recently filed
Annual Report on Form 10-K, Part I, Item 1A, “Risk Factors” and
Quarterly Reports on Form 10-Q, Part II, Item 1A, “Risk Factors”.
All forward-looking statements included in this release are
expressly qualified in their entirety by the foregoing cautionary
statements. Toro cautions readers not to place undue reliance on
any forward-looking statement which speaks only as of the date made
and to recognize that forward-looking statements are predictions of
future results, which may not occur as anticipated. Actual results
could differ materially from those anticipated in the
forward-looking statements and from historical results, due to the
risks and uncertainties described above, the risks described in
Toro’s most recent Annual Report on Form 10-K, Part I, Item 1A,
“Risk Factors” and Quarterly Reports on Form 10-Q, Part II, Item
IA, “Risk Factors,” as well as others that Toro may consider
immaterial or does not anticipate at this time. The foregoing risks
and uncertainties are not exclusive and further information
concerning Toro and its businesses, including factors that
potentially could materially affect Toro’s financial results or
condition, may emerge from time to time. Toro undertakes no
obligation to update forward-looking statements to reflect actual
results or changes in factors or assumptions affecting such
forward-looking statements. Toro advises you, however, to consult
any further disclosures it makes on related subjects in its future
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and
Current Reports on Form 8-K that Toro may file with or furnish to
the SEC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190801006003/en/
Investor Relations Heather Hille Director, Investor
Relations & External Communications (952) 887-8923,
heather.hille@toro.com
Media Relations Branden Happel Senior Manager, Public
Relations (952) 887-8930, branden.happel@toro.com
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