Deere's Income Climbs 47% on Strong Demand for Large Farm Machinery
Deere & Company reported net income of $1.408 billion for the first nine months of the year. That compares with $1.096 billion last year.
Worldwide net sales and revenues increased 16%, to $6.837 billion, for the third quarter and were up 6%, to $18.803 billion, for nine months.
Net sales of the equipment operations were $6.224 billion for the quarter and $17.009 billion for nine months, compared with $5.283 billion and $16.030 billion for the corresponding periods last year.
"John Deere's third-quarter performance reflected the disciplined execution of our business plans and occurred despite continued weakness in certain key sectors," said Samuel R. Allen, CEO "While we have benefited from positive conditions in the U.S. farm sector, particularly in terms of demand for large equipment, European markets are down sharply. Demand for construction and forestry equipment is improved from last year but still remains far below normal levels. Nevertheless, the company has continued to extend its competitive position as a result of our focus on serving customers with advanced new products while keeping a tight rein on costs and assets."
For fiscal 2010 the company is projecting equipment sales to be up about 12% and up about 32% for the fourth quarter compared with the same periods a year ago.
