Deere: Profit Up In 1st Quarter

Net income attributable to Deere & Co., Moline, IL, was $513.7 million for the first quarter ended January 31, compared with $243.2 million for the same period last year, the company said. Worldwide net sales and revenues of all equipment for the first quarter increased 27%, to $6.119 billion, compared with $4.835 billion last year. Net sales of the equipment operations were $5.514 billion for the quarter compared with $4.237 billion a year ago.

Net sales of the worldwide equipment operations rose 30% for the quarter. Sales included price increases of 2%. Equipment net sales in the U.S. and Canada increased 35% for the quarter. Outside the U.S. and Canada, net sales were up 22% for the quarter, with an unfavorable currency-translation effect of 1%.

For the agriculture and turf sector, sales increased 21% for the quarter largely due to higher shipment volumes and improved price realization. Operating profit was $558 million compared with $352 million for the same quarter last year. The improvement was primarily due to higher shipment and production volumes as well as improved price realization, partially offset by increased raw-material costs and higher incentive-compensation expenses.

Worldwide sales of agriculture and turf equipment are forecast to increase by about 16% for full-year 2011, benefiting from favorable global farm conditions. Farmers in many of the company’s markets are experiencing solid levels of income due to strong global demand for agricultural commodities, low grain stocks in relation to use, and rising prices for crops such as corn, wheat, soybeans, sugar and cotton.

“John Deere’s first-quarter results reflect improving demand for our innovative lines of equipment coupled with the skillful execution of our business plans,” said Samuel R. Allen, chairman and chief executive officer. ◆