John Deere – Machinery, Equipment Flat to Up 5% for 2013

John Deere net sales of the worldwide equipment operations rose 11 percent in the first quarter of 2013 to $6.793 billion. John Deere equipment net sales in the U.S. and Canada increased 18 percent for the quarter. Company equipment sales are projected to be up 6 percent for fiscal 2013 and up approximately 4 percent in the second quarter year over year. Net income for John Deere & Company is forecast at $3.3 billion for 2013.

“We’re confident our investment in new products and additional capacity will help Deere fully capitalize on the world’s growing need for food, shelter and infrastructure in the years ahead,” said Samuel
R. Allen, chairman and chief executive officer. “However, the near-term outlook is being tempered by uncertainties over fiscal, economic and trade issues that are undermining business confidence and restraining growth.”

Sales for US and Canada agricultural machinery are expected to be flat to up 5 percent for 2013. Continued strength is expected for large equipment, such as high-horsepower tractors and combines, but be partly offset by a cautious U.S. livestock industry.

Sales of Deere turf and utility equipment in the U.S. and Canada are expected to be flat in 2013 but be better than competitors due to John Deere’s introduction of new products, including the 35G Compact Excavator equipped with Deere’s Final Tier 4 engine.

Construction and forestry equipment sales are expected increase worldwide to 3 percent in 2013. Cautious growth is expected in the U.S. for construction equipment. Demand for forestry equipment will be better in the U.S. than in Europe. Deere announced two new models of harvesters for the forestry industry on Thursday.

Farmers may have a bit less to spend on equipment this year according to John Deere figures. U.S. farmers are forecast to have farm cash receipts of $389.3 billion for 2012, revised upward slightly from the previous forecast of $388.2 billion and. U.S. farm cash receipts for 2011 were $384.7 billion. The cash receipt forecast for 2013 has been revised downward from $402.5 billion to $303.2 billion.