Net income for Deere & Co. was $547.5 million, or $1.28 per share, for its fiscal second quarter ended April 30, compared with $472.3 million, or $1.11 per share for the same period a year ago, an unexpectedly strong 13.7-percent improvement. For the first six months of the fiscal year, net income was $790.7 million, or $1.85 per share, compared with $676.2 million for the year-ago period, a 14.5-percent improvement.
Worldwide net sales and revenues increased 6 percent, to $7.131 billion for the quarter, and increased 1 percent to $11.966 billion for the six-month period. Net sales of the equipment operations were $6.548 billion for the quarter, compared with $6.187 billion a year ago, a 5.5-percent climb.
“We’re proud of John Deere’s strong results, reflecting a disciplined approach to cost and asset management and the solid execution by employees of our business model,” said Samuel Allen, chairman and CEO. “These actions are helping us extend our competitive advantage and fully capitalize on improving business conditions.” Allen said sales of large farm machinery, particularly in the United States and Canada, are making a significant impact on the company’s performance, while construction and forestry shipments are rebounding from historic lows.
Deere’s equipment operations reported operating profit of $988 million for the quarter and $1.303 billion for six months, compared with $628 million and $935 million last year, improvements of 84.3 percent for the quarter and 28.2 percent for the six-month period.
Deere said results were higher in the quarter primarily because of improved price realization, the impact of higher production volumes, the favorable effects of foreign exchange and lower raw-material costs. Net income for Deere’s equipment operations was $454 million for the quarter and $623 million for the six months, compared with $406 million and $560 million for the respective periods a year ago.
The company now expects equipment sales to increase 11 to 13 percent for fiscal 2010 and up to 21 to 23 percent for the third quarter compared with the same periods a year ago. Allen said a consistent investment in advanced new products and expanded global capacity is helping the company benefit from an improving economy and puts it on a strong footing for the future.
“In our view, John Deere is exceptionally well-positioned to help meet the world’s increasing need for farm commodities and other renewable resources as well as for shelter and infrastructure,” Allen said.
