Deere expects healthy growth in construction machinery sales
Moline, Ill.-based equipment manufacturer Deere & Co. expects worldwide sales of construction and forestry equipment to increase by about 35 percent in its 2011 fiscal year, which will end Oct. 31, compared with the previous year. The company reported an 81 percent rise in sales in this business segment in the quarter that ended Jan. 31.
Among other factors cited in a report to the Securities and Exchange Commission (SEC), Deere said “construction equipment sales to independent rental companies are expected to see further growth.”
In the agriculture and turf segment of its business, the company is forecasting a 16 percent increase in sales worldwide. “Farmers in many of the Company’s markets are experiencing solid levels of income due to strong global demand for agricultural commodities, low grain stocks in relation to use, and rising prices for crops such as corn, wheat, soybeans, sugar and cotton,” Deere told the SEC. “Farm commodity prices have escalated sharply since the beginning of the year, lending further support to the outlook.”
The company said it expects farm machinery sales in the United States and Canada to be up about 5 percent this year.