Deere Sets Another Earnings Record
November 21, 2012
It's almost the same story as a year ago. Today Deere and Company announced record earnings for the third year in a row. The company reported net income of $3 billion for the fiscal year ending in October, compared to $2.8 billion last year, and $1.8 billion in 2010.
Spokesman, Ken Golden, says worldwide sales and revenue increased 13 percent to $36 billion. And growth continued to be broad-based. Farm equipment sales rose 13%, while sales of construction and forestry equipment rose 19%. He says, "Both divisions posted sales figures in double digits and were profitable. We expect 2013 equipment sales to continue to increase by about 5%."
Deere expects demand for food and infrastructure to continue next year. But the company is cautious because of the global economy, the "fiscal cliff," and weather. Golden says, "The full outcome of the drought isn't known yet, and we know it has affected farmers in different ways. But farm income is very high, and that bodes well for equipment sales.
As good as the last three years have been, Deere thinks 20-13 will be even better. It predicts profits will set another record at 3.2 billion dollars.