Deere & Company reported net income of $1.208 billion for the second quarter ended April 29, 2018, or $3.67 per share, compared with net income of $808.5 million, or $2.50 per share, for the quarter ended April 30, 2017.
For the first six months of the year, net income attributable to Deere & Company was $673.2 million, or $2.05 per share, compared with $1.007 billion, or $3.14 per share, for the same period last year.
Worldwide net sales and revenues increased 29 percent, to $10.720 billion, for the second quarter and rose 27 percent, to $17.633 billion, for six months. Net sales of the equipment operations were $9.747 billion for the second quarter and $15.721 billion for the first six months, compared with $7.260 billion and $11.958 billion for the periods last year.
- Construction & Forestry. Construction and forestry sales increased 84 percent for the quarter and 73 percent for six months, with Wirtgen adding 60 percent and 44 percent for the respective periods. Also helping sales for both periods were higher shipment volumes and the favorable effects of currency translation.
- Agriculture & Turf. Sales rose 22 percent for the quarter and 20 percent for the first six months due to higher shipment volumes and the favorable effects of currency translation.
Company Outlook & Summary
Company equipment sales are projected to increase by about 30 percent for fiscal 2018 and by about 35 percent for the third quarter compared with the same periods of 2017. Of these amounts, Wirtgen is expected to add about 12 percent to Deere sales for the full year and about 18 percent for the third quarter. Also included in the forecast is a positive foreign-currency translation effect of about 1 percent for the year and third quarter. Net sales and revenues are expected to increase by about 26 percent for fiscal 2018 with net income attributable to Deere & Company forecast to be about $2.3 billion.
"John Deere reported another quarter of strong performance helped by a broad-based improvement in market conditions throughout the world and a favorable customer response to our lineup of innovative products," said Samuel R. Allen, chairman and chief executive officer. "Farm machinery sales in both North and South America are making solid gains and construction equipment sales are continuing to move sharply higher. During the quarter, Deere made significant progress working with its suppliers to ramp up production and ensure that products reach customers in a timely manner. At the same time, we are experiencing higher raw-material and freight costs, which are being addressed through a continued focus on structural cost reduction and future pricing actions."