John Deere first quarter sales rise

Sales at John Deere's construction and forestry division rose +22% year-on-year in the first quarter ended 31 January, 2012, to reach US$ 1.4 billion.

The division's operating profit also grew to US$ 124 million, compared to US$ 88 million in the same period of 2011. The manufacturer said the rise was down to higher shipment volumes and price realisation - factors which were partially offset by higher raw-material costs.

The company was upbeat on market conditions for 2012 and forecast its sales of construction and forestry equipment would rise by +18% this year, compared to its previous forecast of +16%.

"The increase reflects somewhat improved market conditions, growth in international markets, and strength in the rental, energy and materials handling sectors," the company said, adding that growth would also be fuelled by the introduction of advanced new products as well as geographic expansion.