AP
Wednesday August 15, 8:41 am ET
Deere 3rd-Quarter Profit Up 23 Pct. to $537.2M As Solid Sales Offset Declines in U.S., Canada
MOLINE, Ill. (AP) -- Agricultural equipment maker Deere & Co. said Wednesday its third-quarter profit rose 23 percent as strong global sales offset declines in the U.S. and Canada. Net income grew to $537.2 million, or $2.37 per share, for the quarter that ended July 31, up from $436 million, or $1.85 per share in the same period a year ago. Analysts polled by Thomson Financial expected earnings of $1.99 per share for the quarter. Net sales and revenue rose 6 percent to $6.63 billion from $6.27 billion in the third quarter of 2006. Analyst predicted revenue of $6.65 billion. "Deere's efforts to grow a great business, particularly with the support of improving conditions across the global farm sector, are gaining momentum and producing powerful results," Deere chairman and CEO Robert W. Lane said in a statement. Worldwide equipment sales grew 5 percent, mainly due to a 16 percent rise in agricultural equipment sales and a 15 percent improvement in commercial and consumer equipment sales. Those gains were offset by a 20 percent dip in construction and forestry equipment sales amid a downturn in U.S. housing construction. Equipment sales in the U.S. and Canada were down 5 percent for the quarter and off 4 percent for the year to date, while net sales outside the U.S. and Canada increased by 30 percent for the quarter and 25 percent for the first three quarters. The company said in addition to improved sales, there was a slight rise in profits from the financial services division, thanks to growth in Deere's credit portfolio. Deere predicts equipment sales will increase about 16 percent in the fourth quarter and 7 percent for the year. Profits are forecast at $1.7 billion, up from $1.69 billion a year ago. Farm equipment sales are expected to rise 16 percent for the year, with renewed growth in the U.S. and Canada amid robust demand for renewable fuels and high commodity prices. Sales of commercial and consumer equipment are forecast to rise 11 percent for the year. But worldwide sales of construction and forestry equipment are expected to decrease 12 percent for the year as housing construction in the U.S. remains sluggish. Along with John Deere tractors and other farm machinery, the company makes construction equipment and consumer equipment that include mowers, chain saws and snow blowers.
Wednesday August 15, 8:41 am ET
Deere 3rd-Quarter Profit Up 23 Pct. to $537.2M As Solid Sales Offset Declines in U.S., Canada
MOLINE, Ill. (AP) -- Agricultural equipment maker Deere & Co. said Wednesday its third-quarter profit rose 23 percent as strong global sales offset declines in the U.S. and Canada. Net income grew to $537.2 million, or $2.37 per share, for the quarter that ended July 31, up from $436 million, or $1.85 per share in the same period a year ago. Analysts polled by Thomson Financial expected earnings of $1.99 per share for the quarter. Net sales and revenue rose 6 percent to $6.63 billion from $6.27 billion in the third quarter of 2006. Analyst predicted revenue of $6.65 billion. "Deere's efforts to grow a great business, particularly with the support of improving conditions across the global farm sector, are gaining momentum and producing powerful results," Deere chairman and CEO Robert W. Lane said in a statement. Worldwide equipment sales grew 5 percent, mainly due to a 16 percent rise in agricultural equipment sales and a 15 percent improvement in commercial and consumer equipment sales. Those gains were offset by a 20 percent dip in construction and forestry equipment sales amid a downturn in U.S. housing construction. Equipment sales in the U.S. and Canada were down 5 percent for the quarter and off 4 percent for the year to date, while net sales outside the U.S. and Canada increased by 30 percent for the quarter and 25 percent for the first three quarters. The company said in addition to improved sales, there was a slight rise in profits from the financial services division, thanks to growth in Deere's credit portfolio. Deere predicts equipment sales will increase about 16 percent in the fourth quarter and 7 percent for the year. Profits are forecast at $1.7 billion, up from $1.69 billion a year ago. Farm equipment sales are expected to rise 16 percent for the year, with renewed growth in the U.S. and Canada amid robust demand for renewable fuels and high commodity prices. Sales of commercial and consumer equipment are forecast to rise 11 percent for the year. But worldwide sales of construction and forestry equipment are expected to decrease 12 percent for the year as housing construction in the U.S. remains sluggish. Along with John Deere tractors and other farm machinery, the company makes construction equipment and consumer equipment that include mowers, chain saws and snow blowers.
