High Commodity Prices Have Created Strong Profits for America's Farmers

High commodity prices have created strong profits for America's farmers. That has them replacing aging combines, tractors and other equipment. That's been good for Titan Machinery (TITN), which operates 96 farm and construction equipment dealerships in nine states mostly in the upper Midwest. It also has 10 dealerships in Romania and Bulgaria. The company reports first-quarter results Thursday morning. Analysts expect earnings of 38 cents per share, down from 40 cents a year ago. Consensus estimates call for revenue up almost 23% to $391.13 million. Titan shares have fallen off a 52-week high reached in April. But shares climbed almost 6.5% Tuesday to 30.93. The company's dealerships sell new and used tractors, combines and other farm equipment. Much of its stock are the Case IH and New Holland brands made by CNH Global (CNH). The company in April posted better-than-expected earnings, largely on those flush farmers buying up equipment. It forecast the global agriculture market to largely be flat or up slightly, but it said its own manufacturing capacity for ag equipment was already spoken for through the third quarter. Rival Deere (DE) also beat views in its last quarter, fueled by the rising wealth of the world's farmers. Those firms all make and sell heavy construction equipment as well. The sluggish global economy has crimped demand, though some areas are starting to rebuild aging roads and dams, or build new infrastructure. The world's largest heavy equipment maker, Caterpillar (CAT), is building out its own infrastructure to keep up with demand from China and other markets outside the U. S. For mining, construction and other equipment. Source: investors.com