Construction equipment sales up 26 percent for John Deere
Heavy equipment manufacturer Deere & Co. released its financial results Wednesday, recording net income of $1.056 billion on net sales of $10.009 billion for the three months ending April 30. The Moline, Illinois firm sells farming, forestry and construction equipment under the John Deere brand.
Net sales in the construction and forestry category were $1.67 billion for the three months ending April 30, up 26 per cent from $1.329 billion during the same period in 2011.
Deere’s construction products include dump trucks, loads, dozers, skid steers and excavators.
In a press release, the firm said sales improved “primarily due to price realization and higher shipment volumes, partially offset by increased raw-material costs and an unfavorable product mix.”
It predicts worldwide sales of construction and forestry equipment will increase by about 20 percent for 2012.
“The gain reflects further strength in the rental, energy, material-handling, industrial, and international sectors. Of particular note, the company is benefiting from growth in sales to independent rental companies, which are upgrading and replenishing their fleets.”