Deere Announces Earnings for Second Quarter

Deere & Co based in Moline, Illinois posted fiscal net income for the second quarter that reached $802.4 million compared to $495.4 million for the same period one year ago.

For its first half of the fiscal year, attributable net income to Deere reached $996.3 million equal to $3.10 a share, in comparison to $749.7 million equal to $2.36 a share for the same six month period on year ago.

Net revenue and sales worldwide were up 5% ending the quarter at $8.3 billion and increased by over 4% to more than $13.9 billion for the first six months of its fiscal year.

Net sales in equipment operations reached $7.25 billion during the quarter and $11.96 billion for the six months, in comparison to $7.01 billion and $11.9 billion for the same time frames respectively last year.

Net sales for its worldwide equipment operations were up 2% during the quarter and 1% during the first half of the year in comparison with the same two periods one year ago.

Foreign currency did not have a material effect on sales for either the three-month or six-month period in comparison with the same two periods in 2016.

Equipment sales for the U.S. and Canada fell 5% during the quarter and 6% for the six months to start the year.

Outside the U.S. and Canada region, the company saw a jump in sales of 14% for the just ended quarter and 13% for the fiscal year’s first six months.

Equipment operations posted a $1.11 billion operating profit for the three-month period and $1.36 billion for the six months, in comparison to an operating profit of $688 for the quarter and $902 million for six months one year ago.

Equipment sales at Deere are expected to move up 9% for its fiscal 2017 year and by 18% for its third quarter in comparison with the same 2016 periods.

Rates of foreign currency are not expected to create any material effect on its equipment sales for either the third quarter or full year.

Net revenues are expected to increase 9% for its fiscal 2017 with attributable net income for Deere of close to $2 billion.

Deere has demonstrated its continued ability to produce strong results through every phase of its business cycle.