Tax Havens

Yet another US corp recording record profits from overseas sales. The positive results are just rolling in one after the other. This is Stage I. Who thinks Stage II, once manufacturing is moved offshore sufficiently, is to move headquarters offshore to the most stable tax haven? In other words will we see the flight of a significant number of our exporters unless we lower our corporate tax rates? Is it far-fetched?

http://dailybriefing.blogs.fortune.cnn.com/2008/02/13/deere-having-a-nice-run/

Deere having a nice run
Deere (DE) profit leaped in the first quarter as the global farm boom rolls on. The Moline, Ill. tractor maker posted a profit of $369 million, or 83 cents a share, up from the year-ago $239 million, or 52 cents a share. Sales surged 18 percent from a year ago, to $5.2 billion. The results were better than expected: Wall Street analysts were looking for a 78-cent profit on sales of $5.07 billion. Like another maker of heavy machinery, Caterpillar (CAT), Deere is finding that strong global growth and a weak dollar are helping to offset a softening performance at home.

“Advanced product offerings that help John Deere customers be more profitable and productive are supporting the company’s financial performance and helping expand our global market presence,” CEO Robert Lane said. “Further, benefiting from our ongoing actions to create a fundamentally more resilient, more successful business, Deere’s non-agricultural operations remain on a profitable course in spite of weakening economic conditions in the United States.”

Indeed, sales outside the United States surged 37 percent from a year ago, dwarfing a 9 percent rise in North America. Deere expects strong overseas demand to continue, which is why it’s forecasting a 23 percent sales increase for the second quarter - well above the analyst consensus estimate. “The company remains in a prime position to benefit from powerful trends sweeping the world,” Lane said, “such as growing affluence, increasing demand for food and infrastructure, and the rising use of biofuels.”

Coke is another example but, again, the list could go on and on:

http://www.marketwatch.com/news/sto...x?guid={B23F9FA0-6E96-41C6-A889-CCD5447AB254}