On November 3, 2016, Toro announced that it had entered into an agreement to acquire Regnerbau Calw, a privately held manufacturer of professional irrigation equipment.
Company & Industry Overviews
According to U.S. Department of Agriculture figures, net farm incomes in the United States rose from $76 billion in 2010 to $115.3 billion in 2013.
The First Trust ISE Water Index Fund (FIW) invests 3.6% of its holdings in Lindsay.
The agricultural and turf segment is Deere’s main business segment. This segment’s net sales contribution in 4Q15 was 69% and its operating profit contribution was 48%.
One of the ways to calculate free cash flows is by deducting capital expenditures from the company’s operating cash flows.
In a capital-intensive business such as Deere’s (DE), lower net sales can hurt the company’s margins.
Deere & Company (DE) reported EPS of $1.08 in fiscal 4Q15, which beat analysts’ estimate of $0.75 per share.
Drought conditions in 2012 led to an increase in commodity prices, showing the importance of efficient mechanical irrigation and equipment.