John Deere sales up +45%
24 November 2011
US equipment manufacturer John Deere reported a +45% increase in sales in its construction and forestry division for full-year 2011 compared to 2010, reaching US$ 5.3 billion on the back of higher demand and improved pricing.
Full-year construction and forestry operating profit rose to US$ 392 million, compared to US$ 119 million in 2010 - representing a +229% year-on-year increase.
The company said the results were down to higher shipment and production volumes combined with improved pricing. But John Deere said these factors were partially offset by increasing raw material costs and higher research and development expenses.
During the year, John Deere announced plans for six new factories, in China, Brazil and India, including a new engine manufacturing facility in China and a joint venture to manufacturer excavators with Hitachi in Brazil.
Meanwhile, John Deere forecast that its worldwide sales of construction and forestry equipment would grow by +16% in 2012. It said the increase reflected "slightly improved market conditions and activity outside of the US, including strength in Canada", combined with its introduction of a range of new products, and the company's geographic expansion.
John Deere said its construction equipment sales to independent rental companies are also expected to see further gains.