Deere Posts 4Q Profit

Deere & Co., Moline, IL reported net income of $457.2 million in its fiscal fourth quarter in contrast to a loss a year ago on stronger sales in the U.S. and Canada. For the full year, the company’s net income more than doubled to $1.87 billion.

Deere predicted stronger numbers for fiscal 2011 as the global agricultural industry recovers. It forecast net income for fiscal 2011 of $2.1 billion. It expects Agriculture and Turf division sales to rise 7% to 9% in 2011 as farmers in key markets prosper from strong demand for crops, low grain stocks and high prices for corn, wheat, soybeans, sugar and cotton.

But U.S. farm machinery sales are likely to be flat for the new year due to production limits and the transition to stronger pollution control requirements. Deere also sees a recovery in its Construction and Forestry business, with sales rising 25% to 30%. ◆