About Reynolds Farm Equipment

Reynolds Farm Equipment has been an authorized John Deere dealer serving central Indiana since 1955. We are an authorized John Deere dealer that markets John Deere Tractors, John Deere Farm Equipment, John Deere Agricultural Equipment, John Deere Commercial Worksite Equipment, John Deere Golf and Turf Equipment, John Deere Lawn and Garden Equipment, John Deere New Parts, John Deere Used Parts, John Deere Tractor Parts, and John Deere Toys. Our blog, John Deere Stuff, will provide you with useful information related to our business in the farming equipment industry.

If you are looking for further John Deere information or products, visit the Reynolds Farm Equipment website.

Wednesday, December 16, 2009

Deere To Invest In Israeli Manufacturing Company


Deere & Co. announced that it made a conditional offer to buy certain assets and customer relationships of Israel-based BHC Manufacturing. BHC manufactures cotton picker repair parts for all makes of equipment and supplies cotton picker row units for other equipment manufacturers.

This investment will expand Deere’s products and services in its already successful cotton picker business. Management said that by combining BHC’s assets with Deere’s existing manufacturing capacity, John Deere will have improved efficiency and better geographic reach to serve its customers.

Deere continues to focus on its global growth strategy. Earlier in the third quarter, the company announced its plans to expand its farm, forestry and construction operations in Russia. It is setting up a manufacturing and parts center near Moscow. Deere considers Russia an important growth market
for agriculture, forestry and construction equipment. The company said that it will make significant investments over the next five to seven years to expand its capacity for manufacturing and supporting all types of Deere equipment.

The company is currently facing tough market conditions. It saw a 19% drop in sales in fiscal 2009 as farmers and other customers cut their spending under recessionary conditions. Deere now projects a 1% drop in for fiscal 2010, including a 10% drop in the first quarter. We do not see any drivers for growth in farm spending and U.S. construction activity over the coming months.

We maintain a Neutral recommendation on the stock.