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Deere’s First Quarter Sales Grow 11%; Provides Outlook for 2012

February 16, 2012, 07:30 AM
Filed Under: Agriculture

Worldwide net sales and revenues for the first quarter increased 11%, to $6.767 billion, compared with $6.119 billion last year. Net sales of the equipment operations were $6.119 billion for the quarter compared with $5.514 billion a year ago.

Net sales of the worldwide equipment operations rose 11% for the quarter. Sales included price increases of 4 % and an unfavorable currency-translation effect of 1%. Equipment net sales in the United States and Canada increased 5% for the quarter. Outside the U.S. and Canada, net sales were up 21% for the quarter, including an unfavorable currency-translation effect of 2%.

Equipment Division Performance

Agriculture & Turf - Sales increased 8% for the quarter largely due to higher shipment volumes and price realization.

Construction & Forestry - Construction and forestry sales climbed 22%. 

Market Conditions & Outlook

Agriculture & Turf - Worldwide sales of agriculture and turf equipment are forecast to increase by about 15% for full-year 2012, including an unfavorable currency-translation effect of about 3%. Farmers in the world's major markets are expected to experience favorable incomes due to strong demand for agricultural commodities. In addition, John Deere's sales are projected to benefit from advanced new products being launched throughout the world and from major expansions.

Industry farm-machinery sales in the U.S. and Canada are forecast to increase by about 10% in 2012. Overall conditions remain positive and demand continues to be strong, especially for high-horsepower equipment.

Full-year industry sales in the EU 27 nations of Western and Central Europe are forecast to be flat to up 5% as favorable conditions in the grain, livestock and dairy sectors outweigh general economic concerns. Sales in the Commonwealth of Independent States are expected to be considerably higher in 2012, while sales in Asia are forecast to increase moderately. In South America, industry sales for the year are projected to be flat to down 5%, versus attractive levels of 2011, due to drought conditions in Argentina and southern Brazil.

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