What to Expect from Deere’s Earnings

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Feb. 19 (Bloomberg) –- Bloomberg Industries Senior Analyst Karen Ubelhart joins the Surveillance team to preview Deere & Co. ahead of its earnings release. (Source: Bloomberg)

Any other blue-chip.

Why is that?

There's been up tremendously desk terrific -- terrific run.

In particular, grain.

Corn prices are down 35%, pulling down cash receipts, which is a large driver of farm equipment.

People are concerned.

We have a perception of our auto industry being worn out.

Cars are 10, 11 years.

The fleet is close to 12 years old.

A record.

Do we have old farm equipment?

We have had five up years in for me, to man.

You can't use replacement demand as a reason to keep the cycle going.

The earnings are forecast this year if you look at consensus estimates, to drop about 9% this year and another 2% next year.

Isn't that tough for john deere right now?

North america, the largest part of their business, down five percent to 10%. these companies are very leveraged.

If the top one is down 5 present the 10%, the 9% may not be enough.

If you look at a pie chart of the market share, 36% in 2012 for john deere.

Is a pretty big gap between number one and number two.

What does john due to -- john deere due to diversify?

Where does it go from here?

They are growing their construction equip the business.

It is only about 16% of sales, but in the last three or four years they've been focusing on growing that market.

Construction equipment could be up this year.

The problem is, it's all a 60%, 17% of sales for them.

It will not carry the ball.

House the chairman and ceo doing?

Excellent.

Not just double the share, their margins are significantly higher than anyone else.

This text has been automatically generated. It may not be 100% accurate.

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