Record earnings for Deere & Company - KWWL - Eastern Iowa Breaking News, Weather, Closings

Record earnings for Deere & Company

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WATERLOO (KWWL) -

On Wednesday Deere and Company announced another record setting quarter for earnings of $533 million dollars. Company officials say the earnings record is due to a well rounded business plan and strong markets around the world.

Deere and Company says equipment sales, particularly those outside the U.S. boosted their quarterly net income by four percent and that has caused the company to raise its outlook for 2012.

The company posted first-quarter earnings Wednesday of $532.9 million, or $1.30 per share in its fiscal first quarter. That's up from $513.7 million, or $1.20 per share, last year.

"We're trying to run the company in a better way and also we've got markets that are strong right now. North American Ag is very strong. Ag markets all the way around the world are significantly strong," said Director of Global Public Relations for John Deere, Ken Golden.

The visit of China's Vice President Xi Jingping highlights the ties between China and Iowa's agriculture industry as China tries to find ways to feed is ever growing population.

John Deere is building some new plants in China to keep up with the demand there.

"China is important market for us as is Russia, Brazil, and India. These areas that are growing from a population standpoint require more production of food that requires more and better equipment," said Golden.

While John Deere has a new interest over seas it doesn't mean they've forgotten about the heartland. In Iowa they've invested more than a billion dollars in factories. They also have increased manufacturing jobs by several thousand.

"When we talk about North American Ag our sweet spot in North American Ag is high horse powered equipment and those are the big tractors that are the real work horses of agriculture and that's what's made in Waterloo, Iowa," said Golden.

Officials with Deere and Company say they expect equipment sales to be up about 15 percent in fiscal year 2012. The company also predicts a net income of $3.275 billion, which is up from last fall's forecast.

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