Have you noticed that few corporations simply have good or bad quarters these days? More and more frequently, companies report solid results tempered by caution about their future prospects.
The latter increase resulted largely from a 46% pop in overseas sales, while the top-line contribution from the U.S. and Canada grew by just 6%. Agricultural sales were up by 34%, while commercial and consumer equipment unit revenues were up 8%.
But investments are always tied to the future, and Deere's look ahead was somewhat guarded. That restraint is clearly a spreading phenomenon for a host of big U.S.-based companies, including Deere's fellow equipment maker Caterpillar
Specifically, Deere's management continues to look for sales growth, including currency translations, of 20% for both the current quarter and the full year. As you might expect, that figure would clearly be driven by sales from the company's agricultural equipment segment, which management expects to expand at about a 35% pace for the full year. However, that same management also expressed concern about higher raw materials costs, along with the availability of some parts and components.
This tempered outlook aside, my inclination is to recommend that Foolish investors continue to pay close attention to Deere. Like a handful of other companies, including fertilizer producer Mosaic
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