Deere Announces Third Quarter Results

Deere has reported overall net income of $641.8 million for the third quarter ending July 30, which compares with $488.8 million for the same period last year.

The company reported Agriculture & Turf Division sales increased 13 percent for the quarter and 5 percent for nine months, primarily due to higher shipment volumes and price realization, partially offset by higher warranty costs.

Ag & Turf Division operating profit was $685 million for the quarter and $1.899 billion year to date, compared with respective totals of $571 million and $1.329 billion last year.

Results for the quarter benefited from higher shipment volumes and price realization, partially offset by increases in production costs, warranty expenses and selling, administrative and general expenses.

Year-to-date results received support from higher shipment volumes, price realization and a more favorable sales mix, partially offset by increased production costs and higher warranty expenses. Deere’s worldwide sales of agriculture and turf equipment are forecast to increase by about 9 percent for FY 2017.

Industry sales for agricultural equipment in the U.S. and Canada are forecast to be down by about 5 percent for 2017, reflecting weakness in the livestock sector and the continuing impact of low crop prices. The decline is affecting both large and small equipment.

Industry sales of turf and utility equipment in the U.S. and Canada are expected to be about flat for 2017.