Deere sees construction rebound

John Deere saw sales of construction and forestry machines rise +59% in the third quarter of the financial year (ending July 31) to US$ 1.01 billion. The company's sales for the segment over the first nine months of the year were US$ 2.55 billion, up +29% on the figure of US$ 1.97 billion for the same period last year.

Chairman & CEO Samuel R. Allen said, "Demand for construction and forestry equipment is improved from last year but still remains far below normal levels."

Despite this unnaturally low demand, the construction & forestry equipment business made an operating profit of US$ 66 million for the quarter and US$ 65 million for the nine-month period, compared to losses of US$ 28 million and US$ 85 million respectively last year.

Deere says it expects worldwide sales of construction & forestry equipment to increase some +35% for the full year. It said one factor in this was a rebound in sales to independent rental companies.