John Deere optimistic after improved first half

The construction and forestry division of John Deere reported sales for the six months ending 30 April 2010 of US$ 1.5 billion, up +15% on the US$ 1.3 billion recorded for the same period in 2009. Following a -US$ 58 million operating loss for the first half last year, the division recorded a -US$ 1 million loss this year.

The company attributed its improved position to higher sales volumes, improved pricing and beneficial currency exchange. A statement said the operating loss was partially attributable to higher post-retirement benefit costs.

Looking forward, a statement said that sales of construction and forestry equipment are forecast to increase by approximately +30% for the full year, ending October 2010.

"Sales are benefitting from low inventories associated with last year's aggressive production cutbacks and more steady market conditions," said a spokesperson. "Though remaining depressed as a result of declining non-residential construction and relatively high used-equipment levels, construction equipment markets for US manufacturers are showing signs of stabilisation."

Across all its divisions John Deere reported first half sales of US$ 11.9 billion, up +1% on the US$ 11.8 billion recorded for the same period last year. Operating profit for the period rose +44% to US$ 1.5 billion, up from US$ 1 billion 12 months ago.