Deere and Co. posted net income of $712.3 million for its fiscal third quarter ended July 31, compared with $617.0 million in the same period a year ago, a 15.4-percent hike. For the first nine months of the year, net income was $2.13 billion, compared with $1.41 billion for the year-ago period, a 51.3-percent jump.
Worldwide net sales and revenues increased 22 percent to $8.37 billion for the third quarter and rose 24 percent to $23.4 billion for the nine-month period. Net sales of the equipment operation were $7.72 billion for the quarter and $21.56 billion for the nine-month period; increases of 24.1 percent and 8.5 percent respectively.
“Bolstered by yet another quarter of record results, John Deere remains on track for a year of exceptional achievement,” said Samuel Allen, chairman and CEO. “Our success reflects strong demand for the company’s advanced equipment and the skillful execution of our ambitious business plans. These are aimed at expanding our global competitive position and introducing the John Deere brand to a wider group of customers.”
Increased sales of large farm machinery are having a major impact on Deere’s performance, Allen said, while construction-equipment sales are moving higher despite weakness in the North American residential and commercial construction sectors. “The company is achieving record performance in spite of certain key markets being in the early stages of recovery,” added Allen. “This reflects our focus on managing costs and assets, while enhancing our geographic footprint and providing a range of innovative products and services to a growing global customer base.”
Net sales of worldwide equipment operations increased 24 percent for the quarter and 27 percent for nine months compared with a year ago. Equipment net sales in the United States and Canada jumped 10 percent for the quarter and 19 percent year to date, while net sales rose 49 percent for the quarter and 40 percent for nine months outside the U.S. and Canada.
The company expects equipment sales to rise about 25 percent for fiscal 2011 and about 20 percent for the fourth quarter compared to the same periods a year ago.
Construction and forestry sales rose 34 percent for the quarter and 50 percent for the first nine months of the fiscal year with higher shipment volumes and improved price realization. Although operating profit for both periods increased, the gains were partially offset by increased raw-material costs and general expenses. Deere’s worldwide sales of construction and forestry equipment are forecast to jump by about 45 percent for the full year of 2011.
Deere & Co. is based in Moline, Ill.