Business Roundup: Deere sales up 23% with construction jump; Record-breaking World of Asphalt/AGG1; More contractors plan to buy equipment; Deere buys carbon fiber company

John Deere acquires carbon fiber component maker King Agro

John Deere says it has signed an agreement with Spanish company King Agro to acquire the carbon fiber development firm.

Financial details of the deal were not made available.

King Agro has been developing carbon fiber technology products for the last 30 years, is headquartered in Valencia, Spain, and has a production facility in Campana, Argentina.

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CCI: More contractors plan to buy equipment as confidence continues

The commercial construction industry has continued its optimism from 2017 into 2018, with increases in new business prospects, rising revenue forecasts and steady backlogs, according to the Commercial Construction Index.

And for the third consecutive quarter, a higher percentage of contractors report that they expect to spend more on tools and equipment in the next six months – 59 percent for 1Q 2018, up from 55 percent in 4Q 2017.

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Record-breaking 2018 World of Asphalt/AGG1 had more than 8,300 attendees, sold-out show floor

The 2018 World of Asphalt Show & Conference and AGG1 Academy & Expo had a record number of attendees – more than 8,300 – and a sold-out show floor in Houston March 6-8.

Attendees came from all 50 states, 10 Canadian provinces and 50 other countries.

“It was a good show; it’s always nice to see your competitors – see their new innovations and the progress they’ve made with their products,” says Larry Brown, a paving product specialist from Wheeler Machinery, which is a Caterpillar dealership in Salt Lake City, Utah.

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Deere sales up 23% in Q1 with 57% jump in construction equipment; tax reform has early negative impact

Due to the passing of December’s U.S. tax reform bill, John Deere reports that it posted a loss of $535.1 million during its first quarter, which ended January 28.

Without changes brought on by the tax reform bill, Deere says the quarter would have brought income of $430 million on sales $6.9 billion. However, Deere says two things associated with that bill turned things around on the company:

  1. The provisional income tax expense includes a write-down of net deferred tax assets of $715.6 million, reflecting a reduction in the U.S. corporate tax rate from 35 percent to 21 percent.
  2. The cost of a mandatory repatriation of previously untaxed non-U.S. earnings of $261.6 million. This repatriation charge was partially offset by a reduction in the annual effective tax rate and other adjustments of $12.1 million.

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