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John Deere does good……

The farm machinery maker posted higher-than-expected earnings, sending its shares up more than 8 percent, as wider margins at its farm equipment and finance units helped it overcome weak economic conditions.

Deere [DE  56.339   2.559  (+4.76%)   ] Wednesday also raised its outlook for fiscal 2010 machinery sales growth to a range of 6 percent to 8 percent, from a previous estimate that sales would fall 1 percent.

Profitability in the unit that makes Deere’s green tractors and harvesters was especially impressive, reporting margins of nearly 10 percent — three times what investors had expected, according to Eli Lustgarten, an analyst at Longbow Securities.

“It looks like brilliant profitability in ag in a relatively weak market,” Lustgarten said. “It’s a combination of restructuring, it’s a combination of operating efficiency, it’s execution, and brilliant ag margins.”

Deere, the world’s largest maker of agricultural equipment, reported a fiscal first-quarter net profit of $243.2 million, or 57 cents a share, up from $203.9 million, or 48 cents a share, a year earlier.

Revenue fell 6 percent to $4.84 billion.

People gotta eat…right?

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February 17, 2010 Posted by | Blogs, Breaking News, Ecology, Media, Men, Other Things, The Economy, Updates | , , | 5 Comments