Strong forecast from John Deere

US manufacturer John Deere said it expected its global sales of construction and forestry equipment to be +20% higher in 2012.

The strong forecast came as John Deere reported robust results for the six months to 30 April, 2012. Construction and forestry sales were up +24% year-on-year to US$ 3 billion, while operating profit jumped +25% to US$ 243 million.

Higher prices and shipment volumes fuelled the growth, despite increased raw material costs and research and development expenses.

John Deere said the 12-month sales forecast also reflected further strength in the rental, energy, material-handling, industrial, and international sectors.

It noted that it was benefiting in particular from growth in sales to independent rental companies, which are upgrading and replenishing their fleets.