Deere sees strong increase in third quarter earnings

By Derrick Cain

© Copyright Agri-Pulse Communications, Inc.



MOLINE, Ill., Aug. 14, 2013 - Agriculture equipment giant John Deere reported today a 26 percent increase in third quarter earnings compared with the same period last year, as a result of “considerable strength in the farm sector, especially in North and South America.”

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The company said quarterly net income was $996.5 million, or $2.56 per share, compared with $788.0 million, or $1.96 per share, last year.

For the first nine months of the year, net income attributable to Deere was $2.730 billion, or $6.97 per share, compared with $2.377 billion, or $5.88 per share, last year.

The company said worldwide net sales and revenues increased 4 percent, to $10.01 billion, for the third quarter and rose 8 percent to $28.34 billion for nine months. Net sales of the equipment operations were $9.31 billion for the quarter and $26.37 billion for nine months, compared with $8.93 billion and $24.45 billion for the same periods last year.

“John Deere is well on the road to another year of impressive performance after reporting record third-quarter results,” said Samuel R. Allen, Deere chairman and chief executive officer.

Allen noted sales and income for the period were higher than in any prior third quarter.

“Deere's success is a reflection of considerable strength in the farm sector, especially in North and South America,” Allen said. “We also are making further progress executing our wide-ranging operating and marketing plans, which call for expanding our global market presence while keeping a close watch on costs and assets.”

Deere said company equipment sales are projected to be up about 5 percent for fiscal year 2013 and to decrease by about 5 percent for the fourth quarter compared with the year-ago periods. The company said that includes an unfavorable currency-translation impact of about 1 percent for the year.

“Last year's fourth-quarter sales were particularly strong, in part because our factories were running at a high rate to catch up with customer orders,” Allen said. “Even with this difficult comparison, our financial guidance implies a healthy level of income for the coming quarter and a third consecutive year of record results.”

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