John Deere Profits Jumps But Guidance Hurts

Deer & Company the largest agriculture machinery manufacturer said that for the first quarter profits rose 55 percent. The estimate beat Wall Street expectations. Sales in North America ran up 37 percent. Deere sales climbed 18 percent between the November to December quarter. The company is making money being that the dollar has been moving to the downside of the Euro as well as other global currencies. Being that the dollar is falling the company benefited do to the fact that its products have been getting cheaper for its customer base in many of its overseas markets. The production of ethanol has been adding to the companies sales increase as well.

Deere & Company engages in the manufacture and distribution of products and services for agriculture and forestry worldwide. It operates in four segments: Agricultural Equipment, Commercial and Consumer Equipment, Construction and Forestry, and Credit. The Agricultural Equipment segment offers a line of farm equipment and related service parts, including tractors; combine, cotton, and sugarcane harvesters; tillage, seeding, and soil preparation machinery; sprayers; hay and forage equipment; integrated agricultural management systems technology; and precision agricultural irrigation equipment.

The Commercial and Consumer Equipment segment provides equipment, products, and service parts for commercial and residential uses, such as tractors for lawn, garden, commercial, and utility purposes; mowing equipment, including walk-behind mowers; golf course equipment; utility vehicles; landscape and nursery products; irrigation equipment; and other outdoor power products. The Construction and Forestry segment offers a range of machines and service parts used in construction, earthmoving, material handling, and timber harvesting, including backhoe loaders; crawler dozers and loaders; four-wheel-drive loaders; excavators; motor graders; articulated dump trucks; landscape loaders; skid-steer loaders; and log skidders, feller bunchers, log loaders, log forwarders, log harvesters, and related attachments. Its products and services are marketed primarily through independent retail dealer networks and retail outlets.

The Credit segment primarily finances sales and leases by dealers of new and used agricultural, commercial and consumer, and construction and forestry equipment. It also provides wholesale financing to dealers of the foregoing equipment, provides operating loans, finances retail revolving charge accounts, offers certain crop risk mitigation products, and invests in wind energy generation. The company was founded in 1837 and is based in Moline, Illinois.

Deere & Company closed at the end of the day down -0.94 or -1.09% at 85.54 on volume of 8,321,444. The high for the day was 87.31 with the low at 83.94. In after hours trading the stock closed up at 86.00 up 0.46 or 0.54%.




By: Marlin Rolle