Deere & Co. posted worldwide net sales and revenues for its fiscal first quarter ended Jan. 31 of $6.77 billion, compared with $6.12 billion a year ago, an 11-percent jump. Net income was $532.9 million or $1.30 per share, compared with $513.7 million, or $1.20 per share a year ago, an increase of 3.7 percent.
Sales included price increases of 4 percent and an unfavorable currency translation effect of 1 percent. Equipment net sales in the United States and Canada increased 5 percent for the quarter, while outside the U.S. and Canada net sales jumped 21 percent for the quarter.
Deere’s equipment operations reported operating profit of $698 million for the quarter, compared with $646 million last year. Results benefited from price realization and higher shipment volumes, partially offset by increased production costs related to new products and engine-emission requirements, as well as higher raw-material costs.
“By completing another quarter of record performance, John Deere has started 2012 on a strong note,” said Samuel Allen, chairman and CEO. “These results are evidence of the skillful execution of our operating and marketing plans. They also reflect an enthusiastic response by customers worldwide to our advanced lines of equipment. Maintaining such a high level of execution is especially noteworthy as we move ahead with major new-product launches and significantly expand our global market presence.”
Over the past year, Allen said, Deere introduced a record number of products and announced plans to build seven new factories throughout the world. The company also expanded or modernized locations in the United States and other countries.
Allen expects the company to increase growth and profitability in 2012. “Our substantial investment in new products and additional capacity puts Deere on a sound footing to respond to further improvement in key markets that are in the early stages of recovery.”
Deere & Co. is based in Moline, Ill.