Deere (DE) Wants to Double Sales by 2018

Deere & Co. (NYSE:DE), the world’s largest manufacturer of agriculture equipment, said it plans to almost double sales to $50 billion by 2018 by expanding operations outside the U.S.

The company has a goal of achieving a 12 percent operating margin by 2014, Chief Executive Officer Sam Allen said today at Deere’s annual shareholder meeting at its Moline, Illinois, headquarters. Deere will intensify its focus on its agriculture business, which will continue to be the company’s biggest unit, and the construction unit, Allen said. The company will also make “major investments” in construction to enhance its global presence, he said.

“The revised strategy also lays out some challenging aspirations or goals,” he said. “By hitting these marks, the company would grow to about twice its present size and deliver about three times as much economic profit at normal volumes.”

Deere raised its fiscal 2011 profit forecast last week after advancing crop prices boosted North American sales of combines and tractors. The company got 35 percent its sales from outside the U.S. and Canada in the fiscal year ended Oct. 31.





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