Deere's profit jumps on strong North America sales

Company makes compact tractors in Grovetown

Rainier Ehrhardt/Staff
John Deere tractors on display during a visit of the John Deere plant Jan. 27 in Grovetown.
  • Follow Business

NEW YORK - Deere & Co., the world's largest maker of agricultural equipment, said Wednesday its fiscal first-quarter net income more than doubled, driven by growing sales of large farm machinery in the U.S. and Canada.

The Moline, Ill. company earned $513.7 million, or $1.20 per share, for the quarter ended Jan. 31, up from $243.2 million, or 57 cents per share, a year earlier.

FactSet says analysts forecast a profit of 97 cents per share.

Total revenue rose 27 percent to $6.12 billion. Equipment sales in the United States and Canada leaped 35 percent in the quarter. Outside those core regions, sales were up 22 percent for the quarter. Sales were helped by a 2 percent increase in prices.

Agriculture and turf sales rose 21 percent on a combination of higher demand and prices.

Deere said construction demand is up as well. Construction and forestry sales climbed 81 percent, and the unit turned an operating profit in the quarter from a loss in fiscal 2010. Higher costs for raw materials slightly weighed down results.

Deere projects equipment sales will rise 18 to 20 percent during the current fiscal year that ends in October, and about 25 percent in the current quarter.

It predicts net income this fiscal year of about $2.5 billion, up from a November prediction of $2.1 billion. Analysts currently predict $2.37 billion.

Worldwide sales of agriculture and turf equipment are forecast to increase by about 16 percent in 2011. Farmers in many of the company's markets are experiencing income growth due to strong global demand for agricultural commodities, low grain stocks and rising prices for crops such as corn, wheat, soybeans, sugar and cotton. Farm commodity prices have also risen sharply since the beginning of the year.

Deere's worldwide sales of construction and forestry equipment are forecast to rise by about 35 percent this year on higher wood and pulp prices and improved construction equipment sales to rental companies.

Comments (1) Add comment
ADVISORY: Users are solely responsible for opinions they post here and for following agreed-upon rules of civility. Posts and comments do not reflect the views of this site. Posts and comments are automatically checked for inappropriate language, but readers might find some comments offensive or inaccurate. If you believe a comment violates our rules, click the "Flag as offensive" link below the comment.
irishfarmer
24
Points
irishfarmer 02/17/11 - 12:16 pm
0
0
Congrats and great job John

Congrats and great job John Deere. It is great too see this company doing so well. (Nothing Runs Like A Deer!)

Back to Top

Top headlines

Former commissioner's case remains under review

While former Augusta commissioner Donnie Smith's statements to Georgia State Patrol investigators likely can't be used against him, the state Office of the Inspector General continues to conduct ...
Search Augusta jobs