The Toro Company Provides Business Updates Related to COVID-19 Impact
The Toro Company (NYSE: TTC) today provided a business update on the actions it is taking as a result of the novel coronavirus (COVID-19) pandemic.
Richard M. Olson, The Toro Company’s chairman and chief executive officer said, “As the events surrounding the coronavirus continue to unfold, we are focused first and foremost on the health, safety and wellbeing of our employees, customers and communities around the world. We have adopted practices and policies to best support our people during this difficult time, while also enabling us to continue operating our businesses which are critical to helping our customers maintain essential infrastructure globally. The Toro Company is in a solid financial position. We have a strong balance sheet and adequate liquidity to navigate the uncertainty of the current situation and to be well-positioned when the health and economic environments improve.”
People & Plant Operations
The company has preparedness and response plans in place at its facilities and has taken actions to keep employees safe and healthy. In line with guidelines from the Centers for Disease Control and Prevention (CDC), World Health Organization (WHO) and state and local authorities that are intended to slow the virus spread, the company has asked employees who can work remotely to do so and has implemented enhanced health and safety protocols to further safeguard the majority of our employees who perform jobs that must be done in our facilities. These include, among other things, increased frequency of and additional cleaning measures, suspension of all non-essential visitors and reconfiguration of work spaces and direction to achieve social distancing. The company also adopted a special COVID-19 leave policy that provides two weeks of pay for employees who have the virus, are involuntarily quarantined because of the virus or are without work due to changes in our production schedules as the result of the virus.
The company intends to continue operations to the extent possible as an essential critical infrastructure business; however, it is presently temporarily suspending production or reducing levels of production at certain facilities due to the effects of the virus, including anticipated reduced demand for products in certain businesses.
Strong Balance Sheet and Liquidity
The company continues to have a strong balance sheet and liquidity profile, with no significant debt maturities until April 2022. Given the current uncertainties surrounding the economic environment and out of an abundance of caution, the company entered into a three-year term loan agreement for $190 million to refinance revolving credit facility borrowings incurred in connection with the Venture Products, Inc. acquisition and to add incremental liquidity.