Company equipment sales are projected to be up 11-13% for fiscal 2010 and up 21-23% for the third quarter compared with the same periods a year ago. Included is a favorable currency-translation impact of about 3 percent for the year and about 2 percent for the quarter. For the full year, net income attributable to Deere & Company is anticipated to be approximately $1.6 billion. This amount includes the tax charge of approximately $130 million related to U.S. health-care legislation.
Agriculture & Turf Outlook
Worldwide sales of the company's agriculture and turf division are forecast to increase by 9-11% for full-year 2010, with a favorable currency-translation impact of about 3%. Deere's sales are benefiting in particular from strong demand for large tractors and combines.
With support from healthy farm cash receipts, solid commodity prices and low interest rates, industry farm-machinery sales in the U.S. and Canada now are forecast to be up 5-10% for the year.
In other parts of the world, industry sales in Western Europe are forecast to decline 10-15% for the year due to general weakness in the livestock, dairy and grain sectors. High levels of used equipment also are weighing on Western European markets. Sales in Central Europe and the Commonwealth of Independent States are expected to remain under pressure as a result of challenging economic conditions.
In South America, industry sales are projected to increase by about 25% due mainly to improvement in the key Brazilian and Argentinean markets. Conditions in Brazil are receiving support from favorable prices for soybeans and sugarcane and from attractive government-supported financing. The farm economy in Argentina is benefiting from commodity prices and a return to more normal weather conditions.
Industry sales of turf equipment and compact utility tractors in the U.S. and Canada are expected to be up 5-10% for the year.