Deere hits record first quarter earnings of $681 million

MOLINE, Ill. — Net income attributable to Deere & Company was $681.1 million, or $1.81 per share, for the first quarter ending Jan. 31, compared with $649.7 million, or $1.65 per share, for the same period last year.

Worldwide net sales and revenues for the first quarter increased 3 percent, to $7.654 billion. Net sales of the equipment operations were $6.949 billion for the quarter compared with $6.793 billion a year ago.

Equipment is rolling

Equipment net sales in the United States and Canada rose 3 percent for the quarter. Outside the U.S. and Canada, net sales increased 2 percent. Deere’s equipment operations reported operating profit of $891 million for the quarter.

Financial services reported net income attributable to Deere & Company of $142.2 million for the quarter.

Outlook

Company equipment sales are projected to decrease about 3 percent for fiscal 2014 and be down about 6 percent for the second quarter compared with the same periods of 2013.

For the full year, net income attributable to Deere & Company is anticipated to be approximately $3.3 billion.

Deere’s worldwide sales of agriculture and turf equipment are forecast to decrease by about 6 percent for fiscal 2014.

Farm income dipping

Although farm incomes are expected to remain at healthy levels in 2014, they are forecast to be lower than in the previous year. In Deere’s view, the decline will have a dampening effect on demand, especially for larger models of equipment.

Partly as a result of these factors, sales for agricultural machinery in the U.S. and Canada are forecast to be down 5 to 10 percent for the year, with the decline mainly reflecting lower sales of high-horsepower tractors and combines.

Full-year industry sales in the EU28 are forecast to be down about 5 percent due to lower crop prices and farm incomes.

In South America, industry sales of tractors and combines are projected to be down 5 to 10 percent from strong 2013 levels.