Deere's Construction & Forestry group posted a 22-percent gain in sales for the first quarter, with operating profit of $124 million, compared to $88 million last year. Overall net income for the company was $532.9 million, up from $513.7 for 1Q 2011.
Net sales for worldwide equipment operations were up 11 percent, which included a 4-percent increase is machine prices. Sales within the United States and Canada were up 5 percent; the rest of the world, 21 percent. Equipment operations reported operating profit of $698 million for the quarter, compared with $646 million last year.
Company Outlook & Summary
Company equipment sales are projected to be up about 15 percent for fiscal 2012 and for the second quarter compared with the same periods of the previous year, Deere said. For the full year, net income attributable to Deere & Company is anticipated to be approximately $3.275 billion.
Construction & Forestry.
Deere expects worldwide sales of construction and forestry equipment to rise by about 18 percent for 2012. The increase reflects somewhat improved market conditions, growth in international markets, and strength in the rental, energy and material-handling sectors. In addition, Deere's sales are expected to be supported by a range of advanced new products and by geographic expansion. After considerable growth in 2011, world forestry markets are projected to be about the same in 2012 mainly due to economic concerns in Europe.
-Source: Deere & Co.