John Deere construction increases
By Neill Barston24 February 2015
John Deere’s construction and forestry first quarter sales increased +13% for the period ended 31 January, 2015. Revenues were US$ 1.52 billion, compared to US$ 1.35 billion last year.
The company reported profit for the quarter of US$ 146 million, compared with US$ 94 million in 2014. The improvement was due to higher shipment volumes partially offset by higher sales-incentive costs and the unfavourable effects of foreign-currency exchange.
In its outlook, the company said its construction and forestry division was forecast to be up +5% this year.
It said the expected gain reflected economic growth and higher housing starts in the US, offset in part by weakening conditions in the energy sector and energy-producing regions.
Samuel R Allen, chairman and CEO, said, "Our construction and forestry, and financial services divisions had higher profits, showing the benefit of a well-rounded business line-up.
“Deere's results also demonstrated the progress we've made creating a more flexible, responsive cost structure."
He said that while the agricultural side of its business had faced challenges, the firm remained on course to be “solidly profitable in 2015”. Allen added that the company planned to continue expanding into new markets.