NEW YORK Deere & Co.
saw its fiscal fourth-quarter sales rise 13.7 percent compared
with a year earlier as demand for farming equipment climbed in
North America and South America, but the agricultural and
industrial equipment manufacturer fell just short of its
projected targets for the full year.
Net income for the three months
ended Oct. 31 climbed 2.7 percent to $687.6 million from $669.6
million in the same period in 2011 as sales climbed to a record
Agriculture and turf equipment
sales were up 16 percent in the quarter, while construction and
forestry equipment sales increased 7 percent. The Moline,
Ill.-based company attributed the gains to increasing global
demand for food and infrastructure, as well as rising commodity
prices and strong farm incomes.
Net income for the full year
increased 9.5 percent to $3.06 billion, while sales of $36.16
billion jumped 12.9 percent from the previous year. Still, the
companys net income fell short of projectionsthe
company had previously said it expected earnings to reach $3.1
billiondue to the unfavorable effects of foreign currency
exchange, as well as increased production costs and higher
selling and administrative expenses.
Deere said it expects equipment
sales to increase about 10 percent in its fiscal first quarter
ending Dec. 31 and rise 5 percent for the full year, and
anticipates fiscal-year income of about $3.2 billion.
"Deere remains well-positioned
to carry out its growth plans and capitalize on positive
long-term trends, even though present global economic and
fiscal concerns warrant continued caution," chief executive
officer Samuel Allen said in a statement.
The company expects sales to be
flat in the European Union on weakness in the regions
markets and poor harvests in Britain, offsetting a "modest
improvement" in U.S. economic conditions.