The Toro Company Announces Plans for Manufacturing Plant in Eastern Europe
BLOOMINGTON, Minn., USA (February 10, 2011) - To meet increasing worldwide demand for precision irrigation in agriculture, The Toro Company (NYSE: TTC) today announced that it is underway with the development of a new manufacturing plant in Romania. Once complete, the facility will manufacture micro irrigation products for growers of vegetables, field crops, orchards and vineyards in Eastern Europe.
The new facility, located near Ploiesti, will provide added capacity and support production from Toro's micro irrigation plant in Rome, Italy. The move also puts Toro closer to the expanding Eastern European market, where micro irrigation continues to earn a larger share of irrigated agriculture in the region.
“With growing concerns around water availability and cost, our innovative drip technologies help customers worldwide precisely irrigate crops to save water while improving crop yields and quality,” said Judy Altmaier, vice president of operations at The Toro Company. “As demands for water increase, this expansion project represents an important strategic investment for Toro that creates a production and export hub for our products to support growth in Eastern Europe.
“Romania provides many advantages due to its central location, good transportation infrastructure, and access to skilled manufacturing resources. Additionally, the new plant allows us to better support Romania's growing agricultural region.”
Construction of the new facility is expected to start in early 2011 with production slated for late summer of 2011. Once fully operational, the approximately 120,000 square foot plant will employ about 100 individuals. In addition to the new Romania plant, Toro has micro irrigation manufacturing operations in Rome, Australia and North America.
About The Toro Company
The Toro Company (NYSE: TTC) is a leading worldwide provider of turf and landscape maintenance equipment, and precision irrigation systems. With sales of nearly $1.7 billion in fiscal 2010, Toro's global presence extends to more than 80 countries through its reputation of world-class service, innovation and turf expertise. Since 1914, the company has built a tradition of excellence around a number of strong brands to help customers care for golf courses, sports fields, public green spaces, commercial and residential properties, and agricultural fields. More information is available at www.toro.com.
Safe Harbor
Statements made in this news release, which are forward-looking, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or implied. These uncertainties include factors that affect all businesses operating in a global market as well as matters specific to Toro. Particular risks and uncertainties that may affect the company's operating results or overall financial position at the present include: slow or negative growth rates in global and domestic economies, resulting in rising unemployment and weakened consumer confidence; the threat of further terrorist acts and war, which may result in contraction of the U.S. and worldwide economies; drug cartel-related violence, which may disrupt our production activities and maquiladora operations based in Juarez, Mexico; fluctuations in the cost and availability of raw materials, including steel, resins and other commodities; fluctuating fuel and other costs of transportation; the impact of abnormal weather patterns, natural disasters and global pandemics; the level of growth or contraction in our key markets; government and municipal revenue, budget and spending levels, which may negatively impact our grounds maintenance equipment business in the event of reduced tax revenues and tighter government budgets; dependence on The Home Depot as a customer for the residential segment; elimination of shelf space for our products at retailers; inventory adjustments or changes in purchasing patterns by our customers; market acceptance of existing and new products; increased competition; our increased dependence on international sales and the risks attendant to international operations; credit availability and terms, interest rates and currency movements including, in particular, our exposure to foreign currency risk; our relationships with our distribution channel partners, including the financial viability of distributors and dealers; our ability to successfully achieve our plans for and integrate acquisitions and manage alliances or joint ventures, including Red Iron Acceptance, LLC; the costs and effects of changes in tax, fiscal, government and other regulatory policies, including rules relating to environmental, health and safety matters; unforeseen product quality or other problems in the development, production and usage of new and existing products; loss of or changes in executive management or key employees; ability of management to manage around unplanned events; our reliance on our intellectual property rights and the absence of infringement of the intellectual property rights of others; the occurrence of litigation or claims, including the previously disclosed pending settlement of the litigation against the company and other defendants that challenges the horsepower ratings of lawnmowers, which, if the settlement does not become final, the company is currently unable to assess whether the litigation would have a material adverse effect on the company's annual consolidated operating results or financial condition, although an adverse result might be material to operating results in a particular reporting period. In addition to the factors set forth in this paragraph, market, economic, financial, competitive, legislative, governmental, weather, production and other factors identified in Toro's quarterly and annual reports filed with the Securities and Exchange Commission, could affect the forward-looking statements in this press release. Toro undertakes no obligation to update forward-looking statements made in this release to reflect events or circumstances after the date of this release.
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