Deere & Co. posted total revenue of $7.808 billion in the fiscal third quarter of 2017 ended July 30 compared to $6.724 billion in the third quarter of fiscal 2016, a 16.1-percent increase. The construction and forestry division leaped 29.2 percent from $1.157 billion in fiscal Q316 to $1.495 billion in the recently concluded period. The agriculture and turf division climbed 13.5 percent from $4.704 billion a year ago to $5.338 billion in fiscal Q317.
Net income attributable to Deere & Co. was $641.8 million, or $1.97 per share, for the third quarter, compared with $488.8 million or $1.55 per share.
For the first nine months of fiscal 2017, Deere posted $21.720 billion in revenues compared to $20.124 billion a year ago, a 7.9-percent hike.
“John Deere reported another quarter of strong performance as the company continued to benefit from improving market conditions throughout the world,” said Samuel Allen, chairman and CEO. “We are seeing higher overall demand for our products with farm machinery sales in South America experiencing strong gains and construction equipment sales rising sharply. Deere’s performance also is being assisted by an advanced product portfolio and the continuing impact of a flexible cost structure and lean asset base.”
Equipment net sales in the United States and Canada increased 11 percent for the quarter and were down 1 percent for the first nine months of the year. Outside the U.S. and Canada, net sales increased 25 percent for the quarter and 17 percent for nine months.
The company expects equipment sales to increase about 10 percent for fiscal 2017 and be up about 24 percent for the fourth quarter compared with the same periods of 2016.
“Deere’s ability to deliver consistently strong financial results is proof of our success building a more durable business model,” Allen added. “We are continuing to find ways to make our operations more efficient and profitable while providing even more value to our global customers. As a result we are confident Deere is well-positioned to continue its strong performance and to fully capitalize on the world’s increasing need for advanced machinery and services in the future.”
Deere expects its worldwide sales of construction and forestry equipment are forecast to be up about 15 percent for 2017, with no material currency-translation impact. The forecast reflects moderate economic growth worldwide. However, in forestry, global industry sales are expected to be down 5 to 10 percent because of soft conditions in North America.
