In spite of the potential for adverse weather conditions and concerns of cooling in the global economic markets, John Deere and Company (DE) is expecting profits in the $3 billion range for fiscal year 2012.
For the first quarter ending on January 31 2012, John Deere and Company reported a worldwide net sales and revenues of $6.767 billion. This was an 11% increase over Q1 a year ago, when John Deere reported worldwide net sales and revenues of $6.119 billion. This increase in sales was due to the thriving farm economy in much of the world, and management’s steps to help maximize performance in all types of business conditions.
With the rise in food price commodities such as corn, wheat and soybeans, farmers have been able to increase their profit margins. Because of the farmers’ ability to profit from the rise in commodities, companies like Deere, Caterpillar (CAT), CNH Global N.V. (CNH) and Joy Global Inc. (JOY) have all benefited from an increase in sales. The increase in profit margins has given farmers’ the ability to invest in high margin machinery to help maximize their profits and get more from their land.
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