Kelly Manufacturing



National & World Ag News Headlines
John Deere to Raise Prices to Cover Higher Steel Costs
USAgNet - 05/22/2018

Deere & Co. is raising equipment prices this year to protect profit as costs rise. The maker of farm and construction machinery said on Friday that profit was up 50% and equipment sales up 34% annually in its latest quarter, though both figures disappointed analysts. Deere's shares rose 5.8% to close at $155.25, as investors appeared to focus on Deere's strong outlook for sales growth this year, analysts said.

Dow Jones reports that rising expenses in recent quarters have weighed on Deere's performance even as machinery demand picks up. Deere said Friday that it was still paying more for freight and materials.

Chairman and Chief Executive Samuel Allen said the company would cut costs and raise prices to protect profit.

Deere joined a host of U.S. manufacturers reporting rising expenses as a growing U.S. economy drives up prices for materials and shipping. Prices for steel and aluminum have been pushed up by U.S. tariffs on imported metal.

Deere executives said they had to pay more to get their shipments made early this year, pushing up transport costs. They said they would raise prices to reflect that and higher steel expenses as Deere begins taking orders on 2019 models later this year.

The company forecast a 14% increase this year in sales of its iconic green and yellow farm machinery and landscaping equipment after several years of tough sales in its home market. U.S. farm incomes remain constrained by low commodity prices. Many farmers have been planting more soybeans in recent years to offset anemic corn prices.


Other National Headlines
Cloverdale TMR Mixers
Kelly Manufacturing
Copyright © 2024 - Farms.com. All Rights Reserved.