Deere Reports Record Q2 Earnings

May 15, 2013

Deere & Company reported a net income of $1.084 billion, or $2.76 per share, for the second quarter of 2013 ended April 30. For the same period last year, the company reported earnings for $1.056 billion, or $2.61 per share.

According to Samuel R. Allen, Deere chairman and CEO, second-quarter sales and income were the highest for any quarterly period in the company history.

Worldwide net sales and revenues increased 9 percent, to $10.914 billion, for the second quarter and rose 9 percent to $18.335 billion for six months. Net sales of the equipment operations were $10.265 billion for the quarter and $17.058 billion for six months, compared with $9.405 billion and $15.524 billion for the periods last year.

Construction and forestry sales decreased 6 percent for the quarter and six months mainly due to lower shipment volumes. Operating profit was $81 million for the quarter and $153 million for six months, compared with $119 million and $243 million last year. The decline in operating profit for both periods was due primarily to lower shipment volumes, increases in production costs and higher selling, administrative and general expenses, partially offset by price realization. In addition, an unfavorable product mix and higher research and development expenses affected year-to-date results.

Deere's worldwide sales of construction and forestry equipment are forecast to decrease by about 5 percent for 2013. The decline reflects a cautious outlook for U.S. economic growth, cool, wet weather conditions in North America, and flat sales in world forestry markets. In forestry, further weakness in European markets is expected to offset higher U.S. demand.

"After a record-setting second quarter, John Deere is well on its way to another year of strong performance," Allen said. "Deere's results are a reflection of positive conditions in the global farm economy, which continues to show impressive strength. The company's performance also offers further proof of the adept execution of our operating and marketing plans, which are aimed at expanding our global market presence."