Zacks Industry Outlook Highlights: Deere & Company, Caterpillar, CNH Global,
AGCO and Kubota
CHICAGO, Jan. 25, 2013
CHICAGO, Jan. 25, 2013 /PRNewswire/ --Today, Zacks Equity Research discusses
the U.S. Machinery, including Deere & Company (NYSE:DE), Caterpillar Inc.
(NYSE:CAT), CNH Global NV (NYSE:CNH), AGCO Corporation (NYSE:AGCO) and Kubota
A synopsis of today's Industry Outlook is presented below. The full article
can be read at
A world economic recovery, as witnessed from equity market improvements of the
lows experienced since the 2008 global crisis, has been quite impressive. The
journey was difficult with ever-present headwinds hindering growth, the most
recent of which was the Eurozone debt crisis that significantly slowed down
the overall growth pace in 2011 and 2012.
According to the World Economic Outlook Update published by the International
Monetary Fund (IMF) in January 2013, the world economy is projected to grow
3.5% in 2013 (versus 3.6% projected in October 2012) and 4.1% in 2014. Growth
in advanced economies and emerging and developing countries are projected at
1.4% (versus 1.5% expected earlier) and 5.5% (versus 5.6% expected earlier) in
2013, respectively. In 2014, advanced economies are projected to grow 2.2% and
emerging markets 5.9%.
No doubt obstacles still persist as can be deduced from an unstable European
economy and slowly reviving advanced countries that in turn are affecting
emerging markets and developing economies; the overall growth picture may not
materially deteriorate from the IMF's January 2013 forecast.
Demand for the Machinery industry is correlated to increasing economic
activity, which stimulates demand for industrial products, thereby increasing
the need for new/advanced machinery. The major end-markets for the machinery
industry include agriculture, construction, mining and energy industries,
Important Players of the Machinery Industry
Deere & Company's
) fiscal fourth quarter and year 2012 (ended October 31, 2012) results were
impressive. For the year and the quarter, equipment sales rose roughly 14%,
with price realization contributing 4%. The agricultural and forestry
equipment provider is expanding globally to leverage benefits from the growing
global farm industry.
For fiscal year 2013 equipment sales are expected to grow 5% year over year
and for the first quarter by 10%. Net earnings for 2013 are projected to be
approximately $3.2 billion.
) posted a 5% increase in equipment sales in the third quarter of 2012. For
the year 2013, the company expects modest improvements in U.S. and China along
with other major developing countries while conditions in Europe are expected
to be difficult. Revenue growth in 2013 is expected to be within the (5%) to
Italy-based CNH Global NV (NYSE:CNH) posted a 5% to 11% year-over-year
increase on a constant currency basis in its equipment sales (agricultural and
construction) in the third quarter of 2012.
Other top players in the agricultural, construction and mining industry
), among others.
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