You cannot know on whose side to be, there are complaints pointing at deforestation in favor of agricultural land and at the same time there are companies like Deere & Company (NYSE:DE), which specializes in agricultural equipment and forestry machinery, that experience a meltdown in prices. Samuel Allen, Deere & Company (NYSE:DE) chairman & CEO, spoke on CNBC his thoughts on the state of affairs for his company.
Construction is rebounding so it might be the North Star to follow in terms of future prospect and intentions.
“It has not come back as quick as we thought it would, or others. We thought by now we’ll certainly be over a million houses, we’re still not over. The business has come back, it was at a such low level in 2009 as a result of the Financial Crisis that it almost had nowhere to go but up,” said Samuel Allen.
Deere & Company (NYSE:DE) shows some growth for the past 5 trading days, more than 1% practically reaching $89, almost at the same price from which it dived 5 years ago. However, there’s a lot more to be done as the firm’s financial report portrays. Its net income shrunk to $850.7 million, $145.8 million less than a year ago probably as a result of 5% drop in worldwide net revenues, which were $9.5 billion for the third quarter of 2014. Actually, there’s not that much Deere & Company (NYSE:DE) can do on its own for turnaround of events as Caterpillar Inc. (NYSE:CAT), Komatsu Ltd (ADR) (OTCMKTS:KMTUY) and other competitors have similar price patterns.
“Among those things that we talked today including the overall American Economy, US as a nation, the energy boom that we were talking about. If all those things boat well, certainly, there’s a lot of things we could be doing that could further increase our competitiveness,” added Mr. Allen.
The above statement was meant to describe US’ competitive traits, however, a business like Deere & Company (NYSE:DE) with a market capitalization of $23.30 billion goes practically hand in hand with the country’s evolution, and is heavily dependent on the latter effect.
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