Large agriculture unit sales surge in December, led by 4WD and Combines
Jan. 12, 2023 6:58 AM ET
Deere & Company (DE), TITN
By: Manshi Mamtora, CFA
 Vasil Dimitrov/E+ via Getty Images
Large agriculture unit sales surged 4% in December with strong growth in 4WD and combines while row crop saw first Y/Y decline since August 2020. December is seasonally strong month for large agricultural unit sales according to Baird reports.
December 4% rise for large units compares to November +7.2%, October +29.6%, September +11.1%, and August +16.8%. Bifurcating: US sales were up 3.9% following a 6.7% rise in November; Canada sales increased 4.5% vs. 9.8% in November.
Segment wise dissecting: US sales of 4WD tractors was down 11.4%, row crop tractors up 11.5%, thus combines up 25.8%; whereas Canadian 4WD tractor sales were up 327%, row crop tractors up 43.9%, combined up 33.1%.
4WD Tractors: sales seen up 42.5% Y/Y vs. 23.4% in November. US dealer inventories up 41.1% Y/Y in November.
Row crop Tractors: sales down 4.2% Y/Y vs. +2.5% in November. Inventories up 44.8% Y/Y in November, the eighth consecutive month of inventory growth and the highest growth since May 2013.
Combines: sales up 18.2% Y/Y in December after 19.5% rise in November. Inventories inventories up 95.3%Y/Y in November. December typically being an above average month of the year for combine sales,
Mid-range tractor: sales drop 8.7% Y/Y in December vs. November -10.4%.
Stocks to tap include Deere & Company (NYSE: DE) and Titan Machinery (NASDAQ: TITN) |
