Deere 3Q Profit Rises 15% On Stronger Sales |
| Wall Street Journal - Aug 17, 2011 |
Deere & Co.'s (DE) fiscal third-quarter earnings rose 15%, as favorable foreign currency exchange rates and higher prices helped offset rising costs for materials and the introduction of new machinery lines.
Deere, the world's leading manufacturer of farm machinery based on sales, beat expectations for the quarter as farmers continued to buy tractors and harvesting combines amid the ongoing strength in crop prices. Deere, which also makes construction machinery, expects elevated demand for its products to persist for the remainder of its fiscal year and forecast a 20% increase in equipment sales for the fourth quarter.
Company executives said they've seen no indication that deteriorating economic conditions in the U.S. and Western Europe are weakening Deere's performance. They stressed that the ongoing theme of rising global demand for farm commodities remains intact and continues to fuel sales growth at Deere.
"The global ag fundamentals are still extremely strong," said Treasurer Marie Ziegler, during a conference call Wednesday with analysts.
Deere predicted that its sales for the full year will rise about 25%, up from the 21% to 23% increase forecast in May. The company now sees full-year net income of $2.7 billion, or about 6.38 a share, roughly in line with analysts' expectations and up from $2.65 billion forecast earlier by the company.
Read Full Article from Wall Street Journal
- Posted: 2011-08-17 11:40:55
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