John Deere’s 4Q Earnings Surge

John Deere & Co. has announced that higher shipments of lawn care, construction and forestry equipment drove the manufacturing company to post higher sales for the fourth quarter.

And, in fact, sales for the period exceeded analysts’ expectations by more than 10 percent.

“It was a positive surprise,” observed Mark Koznarek, analyst with independent firm FTN Midwest Research. Revenue was a lot stronger than expected, said Koznarek, who noted the company is well-positioned heading into 2004 after lowering manufacturing production levels this year to help clear inventories.

In its commercial and consumer division, Deere said sales climbed 21 percent in the quarter, driven by strong demand for lawn tractors. Deere this year tapped the mass market for the popular riding mowers through a marketing partnership with Home Depot Inc. Construction and forestry sales surged 22 percent as retail demand in the sector perked up.

Source: Reuters