February 15, 2008

Deere reports US$369-million earnings for Q1 

Deere & Company announced Wednesday that its net income reached US$369.1 million, or US$0.83 per share, for the first quarter ended January 31.

For the same period last year, the company gained US$238.7 million, or US$0.52 per share.

Deere's worldwide net sales and revenues increased 18 percent to US$5.201 billion for the quarter compared with US$4.425 billion a year ago.

Net sales of the equipment operations were US$4.531 billion for the period compared with US$3.815 billion last year. 

Robert W. Lane, chairman and chief executive officer, attributed the revenue growth to favourable conditions throughout the global farm sector and positive consumer response.

Lane pointed that advanced product offerings which helped customers to be more profitable and productive are augmenting the company's financial performance.

Net sales of the worldwide equipment operations increased 19 percent for the quarter, including positive effects for currency translation and price changes of 6 percent.

Equipment sales in the US and Canada were up 9 percent for the quarter. Net sales outside the US and Canada increased by 37 percent, which included a positive currency-translation effect of 11 percent. 

Deere's equipment divisions reported operating profit of US$457 million for the quarter compared with US$270 million last year.