Tractors Deere rides high global farm equipment demand to beat Street

frank

Guest
Deere & Co. (DE-N72.85-1.33-1.79%) posted higher quarterly earnings and sales that topped estimates and raised its full-year profit outlook on Wednesday on rising global demand for farm equipment.

The U.S. farm sector is booming on higher worldwide food demand and as biofuels help drive up crop production. Companies like Deere are benefiting from record-high farm income that is spurring farmers to update their equipment.

?Deere is hitting on all cylinders,? said Gary Bradshaw, portfolio manager at Hodges Capital in Dallas.

Sales increased by double digits in the agriculture, and construction and forestry equipment divisions during the quarter.

?Trying to feed everyone, and with more folks going into the middle class that want to eat more meat and protein, you need to feed more cattle and hogs and plant more corn, milo and wheat,? Mr. Bradshaw said. With commodities prices up, farmers? ?pockets are full and they tend to run and buy more equipment.?

The world?s largest farm equipment maker said fiscal second-quarter net income rose to $1.056-billion, or $2.61 per share, from $904.3-million, or $2.12 a share, a year ago. The results topped the average estimate of $2.53, according to Thomson Reuters I/B/E/S.

Net sales of equipment operations rose to $9.4-billion from $8.33-billion a year earlier. Worldwide net sales and revenues increased 12 per cent to $10.01-billion in the quarter, above the average estimate of $9.7-billion.

The company also raised its forecast for 2012 net income to about $3.35-billion from $3.275-billion.

Deere?s shares erased premarket gains to trade 0.7 per cent lower at $76.04 early on the New York Stock Exchange.

Read more at http://www.theglobeandmail.com/glob...source=Report On Business&utm_content=2434671
 

james

Guest
John Deere Updates Its 2012 Outlook

Company equipment sales are projected to increase by about 15 percent for fiscal 2012 and by about 25 percent for the third quarter compared with the same periods a year ago.

Included is an unfavorable currency-translation impact of about 3 percent for the year and 4 percent for the third quarter.

For the full year, net income attributable to Deere & Company is anticipated to be about $3.350 billion.

According to CEO Samuel Allen, promising fundamentals are lending strong support to the company's plans for increased sales and profitability.

"Our extensive investments in new products and additional global capacity are moving ahead at an accelerated rate," he said, pointing out there are more than a dozen major projects under way throughout the world, including seven new factories.

"These investments are essential to the success of our longer-term growth objectives, which we believe are firmly on track. They also put Deere in a sound position to respond to a rising global need for food, shelter, and infrastructure in the years ahead.

"In our view, these powerful trends have considerable staying power and should prove highly rewarding to our customers and investors."

More at http://www.farms.com/
 
 
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