Record Earnings Reported by Toro for 2004

BLOOMINGTON, Minn. - The Toro Company reported Wednesday record net earnings of $102.7 million on record net sales of $1.65 billion for the fiscal year ended October 31.

For its fiscal 2004 fourth quarter, Toro reported net earnings of $6.9 million, or .28 cents per share, on net sales of $336.9 million. The company's fourth quarter earnings are 23 percent higher than fourth quarter 2003.

Kendrick B. Melrose, Toro chairman and CEO, said that the company's fourth quarter and full year performance benefited from generally favorable market conditions that contributed to continued sales growth in most product categories.

?EUR??,,????'??Our record sales and profit performance reflects solid growth in each of our business segments,?EUR??,,????'?? he said. ?EUR??,,????'??We are extremely pleased to report another strong quarter and record results in a milestone year for our company, marking our 90th year in business.?EUR??,,????'??

Melrose said the company expects to encounter additional commodity cost pressures in 2005 and a continued slow pace for new golf course construction. In addition, Melrose said the company plans to invest more aggressively in innovation and technology, product development, process improvement and overall business and brand development.

?EUR??,,????'??There are clearly some uncertainties ahead, but we are now more effective at anticipating and managing through them while delivering steadily improving financial performance for our shareholders,?EUR??,,????'?? he said.

For fiscal 2005, Toro currently expects to deliver earnings per diluted share growth of 12 to 15 percent on sales growth of 7 to 9 percent. For its fiscal first quarter, typically the smallest revenue period, Toro expects to report diluted earnings per share of 38 cents to 43 cents.