Issue link: https://read.dmtmag.com/i/141651
TRENDS AND TIDBITS continued from page 37 Deere Lowers Sales Outlook; Shares Fall The No. 1 farm equipment maker said recently that chilly, rainy weather had delayed plantings in the United States and Canada and threatened the harvest in the United Kingdom, weighing on farmer sentiment. The Moline, Illinois-based company, which also makes earth-moving equipment for builders, slashed its forecast for sales to the construction industry, citing concerns about the outlook for U.S. economic growth and the cooler spring weather. Deere said it expected worldwide sales of construction equipment to fall 5 percent this fiscal year. In February, it had forecast a rise of three percent, boosted in part by higher international demand. William Blair & Co analyst Lawrence DeMaria called the company's revised outlook for construction sales "somewhat of a disappointment, but not a total surprise, given weak results from competitors." Last month, Caterpillar Inc (CAT.N), the world's largest maker of construction equipment, said that while the market was recovering, demand from builders was not materializing as fast as hoped. "Farm is carrying the load, and construction is soft," said analyst Eli Lustgarten of Longbow Research in St. Louis. "Construction is where the big change is." Lower Sales Outlook JPMorgan analyst Ann Duignan said investors had expected Deere, the world's largest maker of tractors and harvesters, to raise its overall outlook. Instead, the company maintained its net income forecast for the full year and reduced its expectation for full-year revenue growth to five percent from six percent. Shares of Deere, the world's largest maker of farm equipment, were down 5.2 percent at $88.90 in morning trading on the New York Stock Exchange. Deere said it earned $1.08 billion, or $2.76 a share, in the second quarter ended April 30, up from $1.06 billion, or $2.61 a share, a year earlier. Excluding a $56 million tax charge involving a German subsidiary, the profit would have been $2.90 a share, Lustgarten said. Analysts on average expected earnings of $2.72 a share, according to Thomson Reuters I/B/E/S. Sales rose nine percent to $10.91 billion, exceeding Wall Street estimates of $9.85 billion. Chief Executive Officer Samuel Allen said the results reflected a strong global farm economy. But Allen added, "Deere's near-term forecast is being tempered by lingering economic concerns in many parts of the world, which are restraining business confidence and growth." Allen also said cool, wet weather in North America had delayed crop planting, slowed construction activity and hurt sales of turf-care equipment. ● www.reuters.com, May 15, 2013 Dalrymple Joins Bobcat Company in Breaking Ground on $20 Million Acceleration Center Gov. Jack Dalrymple today joined public officials and Bobcat Company employees in breaking ground on the company's new Acceleration Center, a $20 million renovation and expansion project at the Northern Plains Commerce Centre (NPCC) in Bismarck. The Acceleration Center will be a high-tech facility for advancing innovation, and designing and testing products to keep Bobcat the leader in the compact equipment industry. "Bobcat is synonymous with cutting-edge innovation and technology, a distinction that has helped solidify its position as a worldwide leader in the compact equipment industry," Dalrymple said. "The company's new Acceleration Center will provide a state-ofthe-art facility for researching new ideas and developing and testing new products that will continue to keep Bobcat on the forefront of innovation, while creating jobs and economic opportunities for our state." The project includes the expansion of an existing building, as well as the construction of a new test track and indoor testing facility, all located at the NPCC. The expansion will include a two-story office building and provide a total of 160,000 square feet of modern workspace. Additionally, a 35,000-square-foot indoor testing arena will be constructed next to a 22-acre outdoor testing and track area. Construction is expected to be completed by summer 2014. The Acceleration Center will initially house 135 employees, including research and development teams, prototype and design engineers, and manufacturing technicians. They will be tasked with innovating and advancing designs, testing, prototype engineering, and the computer simulation of ideas and concepts. Bobcat has 225 salaried and 400 hourly employees at its Bismarck locations. The $20 million in new construction, land and technology investments brings Bobcat Company's total investment in the NPCC, including its original building, to $35 million. The company is based in West Fargo, with manufacturing facilities in Bismarck, Gwinner and Wahpeton. With the completion of the new Acceleration Center, Bobcat will have three locations in Bismarck. ● http://governor.nd.gov/media-center Trends continued on page 47 IDA UNIVERSAL July-August 2013 41