News John Deere
More expensive Deere due to rising costs
Prices of John Deere tractors, machines and earth-moving equipment are set to rise. CEO Samuel Allen announced this after the presentation of the quarterly figures. Both raw material prices and those of transport are rising. Still, the machine giant paints a positive picture for 2018.
Deere & Co is experiencing rising costs for all of their products. That's why CEO Sam Allen announces that prices will rise, so writes Bloomberg. Recently, several American companies came up with price increases due to cost increases.
Rising costs
Prices for steel and aluminum have risen sharply. That touches John Deere in the heart. In addition, transportation of goods in the United States is becoming a problem. Fuel costs are higher and there is a severe shortage of truck drivers, which increases costs. This adversely affects the output capacity of machines.
Allen says that John Deere is focusing on structurally lowering costs in order to be prepared for further price increases. Despite the news, John Deere expects a higher net result this financial year. The latest estimate comes in at net sales of $3,1 billion, versus the previous estimate of $2,85 billion. Both the agricultural and earthmoving divisions are in better shape. The value per share fell slightly.
Less sales
The rising global grain prices are not reflected in the manufacturer's expectations. On the contrary, it estimates to sell slightly fewer machines. During the past financial quarter, worldwide sales increased by 29%.
Niels van der Boom
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
