Deere Reports Strong Q4, Forecasts Big Gains in 2018
Deere has forecast a 19 percent increase in net sales for the coming fiscal year. The news comes after fourth-quarter results that exceeded analyst expectations.
The company said equipment net sales in the United States and Canada surged 23 percent in the fourth quarter, which ended Oct. 29. Sales in other markets jumped 30 percent.
"We saw higher overall demand for our products with farm machinery sales in South America making especially strong gains and construction equipment sales rising sharply," CEO Samuel Allen said.
Deere expects higher demand for large equipment to push up sales at its agriculture and turf division in the U.S. and Canada by 5 percent to 10 percent in 2018.
The company generates 70 percent of sales from agricultural equipment and around 60 percent of sales from the North American farm equipment market. Sales in North America have been down the past four years, but analysts say farmers appear ready to buy equipment to replenish aging fleets. Source: CNBC