Combine And Tractor Manufacturer, Deere Beats Wall Street’s Expectations 13/02/2008
Last week Deere & Co announced that their first quarter profit rose by 55 percent, a huge increase which surpassed Wall Street’s expectations. The rise is attributed to several factors including huge increase in crop prices which in turn pushes the demand for farm equipment, mostly tractors and combine harvesters to rise in value. Last year saw a slow rise in sales for the largest manufacturer of agricultural machinery with an 18 percent increase in November-January term. The rise in sales as also increased across the globe, with a 37 percent increase outside of the US.
The dollar’s decline against the Euro and other currencies has meant that other countries can take advantage of cheaper prices by importing Deere’s agricultural machinery. The increase in ethanol production which has increased farm prices has also seen a rise in equipment, such as combines and tractors. Deere announced the profit for the first quarter ending January 31st at $369.1 million which resulted in 83 cents per share.