Deere & Company (DE - Free Report) has been selected as the official supplier of golf course machinery for highly coveted women's professional golf tournament - The 2015 Solheim Cup to be held in Germany. Only 12 best golfers from Europe and United States will participate in this tournament.
The tournament was first held in 1990 and since then was staged in every even number years until 2002. Starting 2003, the tournament is held in odd number years. In 2015, the tournament will be held at St Leon-Rot golf course in Germany from Sep 18 to Sep 20, 2015. The venue is also advantageous considering that it is close to Deere’s European headquarters in Mannheim, Germany, and its German sales branch.
According to the agreement with the Ladies European Tour (LET) and St. Leon-Rot Golf Club, Deere will provide machinery and services through its European dealer network. Deere has a successful partnership with the Ladies European Tour for the last 6 years and the company had earlier supplied machinery during the 2011 Solheim Cup in Ireland.
Deere has also been selected for the 2015 PING Junior Solheim Cup - a version of the Solheim Cup for girls to be held at St. Leon-Rot. It follows a similar format to The Solheim Cup and features the top 12 U.S. amateur girls.
Deere’s impressive product quality and customer service provided an edge to the company. These contracts will benefit Deere’s agriculture and turf segment (approximately 80% of the total revenue). It manufactures and distributes farm equipments as well as equipments, products and service parts for commercial and residential use, which includes tractors for lawn, garden mowing equipment and golf course equipment.
Deere will also benefit from relatively high commodity prices and strong farm incomes, recovery in construction sector and strength in Brazil. However, continued weakness in the European markets, additional import duty imposed in Russia, Kazakhstan and Belarus, margin headwinds that include higher production costs associated with interim Tier 4, and global growth expenses remain concerns.
Deere currently retains a Zacks Rank #3 (Hold). Other stocks in the same industry with favorable Zacks ranks are Kubota Corporation and Kawasaki Heavy Industries Ltd. , with a Zacks Rank #1 (Strong Buy), while Lindsay Corporation (LNN - Free Report) carries a Zacks Rank #2 (Buy).