John Deere sales up +50%

Sales at John Deere's construction and forestry division rose +50% year-on-year for the nine months to 31 July to US$ 3.8 billion, and the company expects this momentum to continue for the full year.

The equipment manufacturer said operating profit for the first nine months of the year jumped from US$ 65 million in 2010 to US$ 304 million this year. This +368% increase was attributed to higher sales volumes in markets outside North America, together with higher prices.

John Deere said it expected its worldwide sales of construction and forestry equipment to increase +45% for full-year 2011.

"The increase reflects market conditions that are somewhat improved in relation to last year's low level and increased activity outside of the US and Canada," the company said, adding that construction equipment sales to independent rental companies were also seeing "significant growth".

However, John Deere said its group-wide results for full-year 2011, including agricultural machinery, would be down by about US$ 70 million in sales and US$ 10 million in operating profit from the effects of the Japanese earthquake and tsunami earlier this year.

CEO Samuel Allen also highlighted concerns over the health of the global economy and recent turmoil in world financial markets, warning that these factors had introduced an additional element of uncertainty into the company's near-term outlook.