Deere announces record earnings

MOLINE, Ill. — Net income attributable to Deere & Company was $996.5 million, or $2.56 per share, for the third quarter that ended July 31, compared with $788.0 million, or $1.98 per share, for the same period last year.

For the first nine months of the year, net income attributable to Deere & Company was $2.730 billion, or $6.97 per share, compared with $2.377 billion, or $5.88 per share, last year.

Worldwide, net sales and revenues increased 4 percent, to $10.010 billion for the third quarter and rose 8 percent to $28.345 billion for nine months.

Net sales of the equipment operations were $9.316 billion for the quarter and $26.373 billion for nine months, compared with $8.930 billion and $24.454 billion for the same periods last year.

Net sales of the worldwide equipment operations increased 4 percent for the quarter and 8 percent for nine months compared with the same periods a year ago.

Equipment net sales in the United States and Canada rose 4 percent for the quarter and 9 percent year-to-date. Outside the United States and Canada, net sales increased 5 percent for the quarter and 6 percent for nine months, with unfavorable currency-translation effects of 1 percent and 3 percent for these periods.

Company outlook

Company equipment sales are projected to be up about 5 percent for fiscal year 2013 and to decrease by about 5 percent for the fourth quarter compared with the year-ago periods. Included is an unfavorable currency-translation impact of about 1 percent for the year.

For the full year, net income attributable to Deere & Company is anticipated to be about $3.45 billion.

Equipment division performance

Agriculture & Turf. Sales increased 8 percent for the quarter and 12 percent for nine months, largely due to higher shipment volumes and price realization, partially offset by the unfavorable effects of currency translation.

Operating profit was $1.336 billion for the quarter and $3.684 billion year-to-date, compared with $1.014 billion and $2.991 billion, respectively, last year.

The improvement for the quarter was driven primarily by the impact of price realization and higher shipment volumes. Also affecting third-quarter results was an impairment charge for long-lived assets related to John Deere water operations.

Industry sales for agricultural machinery in the United States and Canada are forecast to be up about 5 percent for the year, reflecting continued strength in demand for large equipment such as high-horsepower tractors and combines.

Construction and Forestry

Construction and forestry sales decreased 11 percent for the quarter and 8 percent for nine months, mainly as a result of lower shipment volumes. Operating profit was $107 million for the quarter and $259 million for nine months, compared with $113 million and $356 million last year.

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