Deere Reports Record 1Q Earnings

February 13, 2013

Deere & Company announced worldwide net income of $649.7 million for the first quarter ended January 31, compared with $532.9 million for the same period last year.

For the first quarter, worldwide net sales and revenues increased 10 percent, to $7.421 billion, compared with $6.767 billion last year. Net sales of the equipment operations were $6.793 billion for the quarter compared with $6.119 billion a year ago.

Construction and forestry sales decreased 7 percent for the quarter. Operating profit was $71 million, compared with $124 million a year ago. This decline is attributed to lower shipment volumes, higher production costs and an unfavorable product mix.

Deere forecasts its construction and forestry sales to increase by about 3 percent for 2013. The increase reflects a cautious outlook for U.S. economic growth, higher international sales of construction equipment and flat sales in world forestry markets. In the forestry sector, further weakness in European markets is expected to offset higher U.S. demand.