MOLINE, IL - Improving demand for farm and construction equipment leads to higher second-quarter results as John Deere posted its second-quarter earnings at $802 million.
"John Deere reported strong results in the second quarter as market conditions showed signs of further stabilization," said Samuel R. Allen, chairman and chief executive officer. "We are seeing modestly higher overall demand for our products, with farm machinery sales in South America experiencing a strong recovery."
Allen said Deere's performance also reflects the sound execution of the company's operating plans, the strength of a broad product portfolio, and the impact of actions to develop a more agile cost structure.
"As a result, we have raised our forecast and are now calling for significantly higher earnings for the full year," he said, adding that the full-year earnings forecast increased to $2 billion, on 9 percent sales gain.
Net income attributable to Deere & Company (NYSE: DE) was $802.4 million, or $2.49 per share, for the second quarter ended April 30, 2017, compared with $495.4 million, or $1.56 per share, for the period ended May 1, 2016.
For the first six months of the year, net income attributable to Deere & Company was $996.2 million, or $3.10 per share, compared with $749.8 million, or $2.36 per share, last year.
Worldwide net sales and revenues increased 5 percent, to $8.287 billion, for the second quarter and increased 4 percent, to $13.912 billion, for six months.
Net sales of the equipment operations were $7.260 billion for the quarter and $11.958 billion for the first six months, compared with $7.107 billion and $11.876 billion for the same periods last year.