Deere predicts bumper crop of profit
Boosted by improvement in the construction and forestry equipment units, Deere enjoys a blowout first quarter.
Deere gets about 65% of its sales from the United States and Canada, so when the company raised guidance for 2011 it was itself a vote for continued good times in the farm belt. For the full fiscal year, which ends in October 2011, the company now projects that sales will climb by 18% to 20%. That’s a big increase from its previous guidance of 10% to 12% for the fiscal year. Net income will climb to $2.5 billion. That’s substantially above Wall Street projections of $2.36 billion for the fiscal year. The company had previously guided to net income of $2.1 billion.
At the time of this writing, Jim Jubak didn't own shares of any companies mentioned in this post in personal portfolios. The mutual fund he manages, Jubak Global Equity Fund(JUBAX), may or may not own positions in any stock mentioned. The fund did own shares of Agrium and Deere as of the end of December. For a full list of the stocks in the fund as of the end of the most recent quarter, see the fund's portfolio here.
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The company plans to close stores and lay off employees, and says it needs to make some deeper changes.
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