While 2011 unit shipments of farm machinery were flat coming off a stellar year in 2010, U.S. Census Bureau data indicates the dollar value of ag equipment shipments rose by 17% last year.
“Though shipments in units were relatively flat in 2011 according to Assn. of Equipment Manufacturers (AEM), growth in horsepower, pricing, features and exports aided revenue growth for OEMs, in our view,” Ann Duignan, analyst for JP Morgan said in a note to investors.
For 2011, non-seasonally adjusted industry shipments released by the U.S. Census Bureau indicates a 17% full-year growth rate, according to Duignan. This includes up 11% in November and up 7% in December. This data includes exports.
“For Deere’s first quarter of fiscal 2012, shipments were up 9% through December, the latest month available,” says Duignan. “Our industry revenue model, which is based on reported retail sales of products in AEM’s data, suggests a 16% revenue decline for January, with tractor revenues down 4% and combine revenues down 43%.”
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