John Deere: Results and forecast positive

Wednesday 6 Jun 2018

Equipment net sales for second quarter climb 34% on strength in key markets - Conditions for agricultural and construction equipment show broad-based improvement. Worldwide net sales and revenues increased 29 percent for the quarter and and rose 27 percent for six months. Company equipment sales are projected to increase by about 30 percent for fiscal 2018 and by about 35 percent for the third quarter compared with the same periods of 2017.

Construction and forestry sales increased 84 percent for the quarter and 73 percent for six months, with the newly acquired Wirtgen adding 60 percent and 44 percent for the respective periods. Also helping sales for both periods were higher shipment volumes and the favorable effects of currency translation.

Deere's worldwide sales of construction and forestry equipment are anticipated to be up about 83 percent for 2018, including a positive currency-translation effect of about 1 percent. Wirtgen is expected to add about 56 percent to the division's sales for the year.

The outlook reflects continued improvement in demand driven by higher housing starts in the US, increased activity in the oil and gas sector, and economic growth worldwide. In forestry, global industry sales are expected to be up about 10 percent mainly as a result of improved demand throughout the world, led by North America.

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