Deere Forecasting Double Digit 2012 Global Sales Growth
Deere & Company reported net income was a record $533 million for the first quarter ended January 31, compared with $514 million for the same period last year. Deere said worldwide net sales and revenues for the first quarter increased 11%, to $6.8 billion, compared with $6.1 billion last year.
The following was excerpted from the news release on Deere’s upbeat market outlook for 2012:
Worldwide sales of agriculture and turf equipment are forecast to increase by about 15% for full-year 2012. Industry farm-machinery sales in the U.S. and Canada are forecast to increase by about 10% in 2012. Deere said overall conditions remain positive and demand continues to be strong, especially for high-horsepower equipment. Deere said U.S. and Canada industry sales of turf and utility equipment are expected to increase “slightly” in 2012.
Deere’s worldwide sales of construction and forestry equipment are forecast to rise by about 18% for 2012. The company noted that the increase reflects somewhat improved market conditions, growth in international markets, and strength in the rental, energy and material-handling sectors. After considerable growth in 2011, Deere said world forestry markets are projected to be about the same in 2012 mainly due to economic concerns in Europe.
Deere also reported that net income attributable to John Deere Capital (JDCC) was $93.3 million for the first quarter, compared with $83.8 million last year. Results improved for the quarter primarily due to growth in the credit portfolio and a lower provision for credit losses. Net receivables and leases financed by JDCC were $22.5 billion at January 31, 2012, compared with $20.7 billion last year.
To read the full Deere & Company news release click here.
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