Deere & Company reported a strong performance for the second quarter of 2018, lifting the company from its first quarter slump. Net income reached $1.208 billion, or $3.67 per share, for the three-month period ended April 29, compared with $808.5 million, or $2.50 per share, for the similar quarter in 2017. Worldwide net sales and revenues increased 29 percent, to $10.72 billion for the second quarter. Net sales of the equipment operations were $9.747 billion, compared with $7.26 billion for the same period last year. Chairman and CEO Samuel R. Allen noted “solid gains” in farm machinery sales in North and South America. Equipment net sales in the U.S. and Canada increased 27 percent. Outside the U.S. and Canada, net sales rose 45 percent. Deere’s acquisition of the Wirtgen Group added 12 percent to worldwide net sales for the quarter, and contributed $41 million to total operating profit of $259 million. In the agriculture and turf equipment division, sales rose 22 percent due to higher shipment volumes and favorable effects of currency translation. Deere reported a net loss of $535.1 million for the first quarter of 2018, largely due to a provisional income tax expense associated with tax reform. Allen said, "Deere is well-positioned to capitalize on further growth in the world's agricultural and construction equipment markets." Company equipment sales are projected to increase by about 35 percent for the third quarter and 30 percent for the 2018 fiscal year, when compared to the same periods of 2017.
Balanced Reporting. Trusted Insights. Wednesday, October 20, 2021