Deere & Company Makes Gains in 2012 as North American Agriculture, Construction Markets Improve

Researched by Industrial Info Resources (Sugar Land, Texas)--Deere & Company (NYSE:DE) (Moline, Illinois), the leading manufacturer of agricultural machinery worldwide, maintained a strong financial position in 2012. The company reported $3.1 billion in net income, a 9% increase from 2011, and $36.2 billion in net sales and revenues, a 13.6% increase. Industrial Info is currently tracking nine Deere projects in the U.S worth an estimated $300 million. Three of the projects are currently under construction with the largest, worth $85 million, in Iowa. Deere likely will continue to invest in the U.S. as 2013 develops.

Deere saw solid success in its three major sectors: Agriculture & Turf (A&T), Construction & Forestry (C&F), and Financial Services. The majority of the growth occurred in A&T, Deere's largest division, which came out with new, advanced products in 2012, and expanded its customer base. A&T results were boosted strongly by positive farm conditions and higher U.S. sales of large equipment.

C&F continued its push to the top with operating profit increasing 21% and sales increasing 19%. C&F also introduced new, advanced products, and continued its expansion into new countries, gaining market share in key product categories. It also benefited from an improving construction market in North America.

Deere's Financial Services sector delivered concrete profits as well, and provided significant financing opportunities to its equipment customers. Earnings, on the other hand, headed just a bit south in 2012, but the loan portfolio grew by about $4 billion.

Agriculture & Turf

• Helped by higher volumes and price realization, profits increased 14% to a record $3.9 billion, on a 13% sales gain.
• In the North American market, A&T saw expansions in Waterloo and Des Moines, Iowa, for the production of tractors and sprayers. It also announced plans for an expansion at a planter factory in Moline, Illinois.
• A&T continued its move into new and developing markets by breaking ground for a tractor factory in Dewas, India, as well as beginning operations at a combine factory in Sirhind. A&T is opening sales branches in Thailand and Kenya.
• A&T is rapidly expanding in China, opening plants for large agriculture equipment in Harbin, which is China's top grain-producing region, and for cotton equipment production in Jiamusi.

Construction & Forestry

• As part of an expansion of product lines, C&F plans to unveil its largest articulated dump truck, a 46-ton model that is aimed at large contractors and the mining industry.
• C&F is continuing with construction for plant in Tianjian, China, that will produce and manufacture wheel loaders and hydraulic excavators.
• Deere also is continuing with an expansion at U.S. joint-venture Deere-Hitachi's plant for excavators that are sold in the U.S.
• Construction is continuing on two plants in Indaiatuba, Brazil. One plant is being planned to produce backhoes and wheel loaders, and the other, through Deere-Hitachi, to manufacture excavators.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.