Deere
& Company stock is an American based company which specializes in the
manufacturing of agricultural, construction, and forestry machinery, diesel
engines, drivetrains used in heavy equipment, and lawn care equipment. It is
one of the leading companies in the world which supplies globally and is doing
well when compared to its peers and competitors. Currently and recently, the
company had mostly emphasized and relied on the Agricultural & Turf
Equipment Division. The company has three categories in which it specializes
which includes Construction & Forestry and Financial Services. Out of which
agriculture and turf equipment division has the highest contribution in the
overall revenue of the company.
The company said that its agriculture and turf
equipment sector, alone, generated about 77% of the company’s revenue last year
which indicates that the company is solely relying on this division and
focusing to bring more and more development in it. The company’s agriculture and
turf equipment part manufactures and distributes different equipment along with
service parts for commercial use. The company officials say “It offers
tractors, harvesters, balers, mowers, forage, tillage equipment, sprayers and
seeding equipment under its agriculture product portfolio and utility vehicles,
mowers, snow and debris handling equipment, golf and turf care under its turf
equipment portfolio.”
It believes that as the population of the nation is
growing gradually, the government will gave to meet the demands of food
requirements to support it which will drive the sales of agricultural
equipment. Hence, high level of food production will be beneficial for the
company and other companies in this sector as well. Moreover, the United
Nations believes “agricultural production will have to be increased by 60% in
order to cater to the additional 2 billion population of the world by 2050.”
Hence to sum it up, the future is pretty much safe
for Deere & Company as the analysts predicted that will there be another 2
billion people added in the population of the United States by 2050. Therefore,
more the demand requirements of food will bolster the position of companies
specializing in this industry.
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