Deere Revenues Increase 1.8 Percent in Fiscal First Quarter

Worldwide net sales and revenues for John Deere’s fiscal first quarter ended Jan. 29 increased 1.8 percent year over year to $5.625 billion compared with $5.525 billion a year ago. Net sales of equipment operations declined 1.5 percent to $4.698 billion compared with $4.769 billion a year ago.
Feb. 17, 2017
2 min read

Worldwide net sales and revenues for John Deere’s fiscal first quarter ended Jan. 29 increased 1.8 percent year over year to $5.625 billion compared with $5.525 billion a year ago. Net sales of equipment operations declined 1.5 percent to $4.698 billion compared with $4.769 billion a year ago. Net income was $193.8 million or $0.61 per share compared with $254.4 million or $0.80 per share a year ago.

Equipment net sales in the United States and Canada decreased 8 percent, while outside of the U.S. and Canada, net sales hiked 11 percent.

“John Deere has started out the year on a positive note in the continued face of soft market conditions,” said Samuel Allen, chairman and CEO. “Although the quarter’s sales and earnings were somewhat lower than last year, all of our businesses remained solidly profitable. Deere’s performance showed further benefits from the sound execution of its operating plans, the strength of a broad product portfolio and the impact of a more flexible cost structure. At the same time, we are seeing signs that after several years of steep declines key agricultural markets may be stabilizing.”

Deere’s equipment operations reported operating profit of $247 million for the quarter, compared with $214 million in 2016. The improvement was primarily driven by price realization, partially offset by expenses associated with voluntary employee-separation programs, higher warranty costs and unfavorable currency exchange.

Net income of the company’s equipment operations was $80 million compared with $127 million for the same period a year ago.

Deere expects equipment sales to increase about 4 percent for fiscal 2017 and go up about 1 percent in the second quarter compared to the same periods a year ago.

Deere’s worldwide sales of construction and forestry equipment are forecast to increase about 7 percent in 2017, a reflection of moderate economic growth worldwide. 

About the Author

Michael Roth

Editor

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.

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