Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$DE, which is set to close the $5.2Bil valued acquisition of German road construction equipment maker Wirtgen Group in Dec. 2017, projects net sales improvement of 19% and net income of $2.6Bil for FY18. Wirtgen acquisition will contribute $3.1Bil or 12% to net sales in FY18.
$DE reported solid results for fourth quarter of 2017, as the global agriculture equipment market continues to improve due to demand for farm machineries. Persistence Market Research forecasts that over 7MM farm equipments will be sold globally by 2024. Deere’s profit jumped 79% to $510MM. Net sales from equipment operations surged 26% to $7.09Bil.
$DE equipment sales are projected to be up about 10% YoY for FY17 and up about 24% for 4Q17. Net sales and revenues are projected to increase about 11% for FY17, with net income attributable to the company of about $2.075Bil. $DE also expects Agriculture & Turf and Construction & Forestry worldwide sales to increase in FY17.
Farm equipment manufacturer $DE posted back to back quarter of earnings spike for the first time in three years. Earnings for 3Q17 jumped 31%, on equipment sales and revenue increases, to $642.3MM or $1.97 per share, up from $488.8MM or $1.55 per share a year earlier. Net sales and revenue jumped 16% to $7.8Bil.
$DE, which provides products and services to the farm sector, has acquired privately-held sprayer manufacturer Mazzotti. The acquisition will help John Deere expand its operations in the European markets. Mazzotti will maintain its name, trademark, and commercial agreements.
$DE agreed to acquire the Wirtgen Group, a privately-held international company that is the leading manufacturer worldwide of road construction equipment. The purchase price for the equity is EUR4.357Bil in an all-cash transaction. The total transaction value is about EUR4.6Bil, including the assumption of net debt and other consideration.
$DE stated that on the Canada high horsepower farm equipment order availability, there is no change from last year. Additionally the company added that looking at the water re-tractor numbers, the order book has strengthened significantly over 2Q17.
Net income attributable to $DE's Financial Services unit was $64.5MM for 2Q17, compared with $69.6MM a year ago. The decline was primarily due to less-favorable financing spreads and higher expenses. For FY17, this income is expected to be approx $475MM, which reflects lower YoY losses on lease residual values.
In 2Q17, $DE's sales grew 1% for Agriculture & Turf segment and 7% for Construction & Forestry segment. For FY17, sales of agriculture and turf equipment are forecast to increase by about 8%, while sales of construction and forestry equipment are expected to be up about 13%.