Net income attributable to Deere rose to $802.4 million, or $2.49 cents per share, in the second quarter ended April 30 from $495.4 million, or $1.56 cents per share, a year earlier.
Deere & Company (NYSE:DE) reported a Q2 profit that increased 62% over last year's comparable period on revenue that was up 2.1%. The company said revenue for the quarter rose to $7.26 billion, up from $7.11 billion a year ago. Five analysts surveyed by Zacks expected $7.24 billion. The company now expects sales to rise 9% through October, up from its earlier estimate of about a 4% increase. Operating profit was $108 million for the quarter and $143 million for six months, compared with $74 million and $143 million previous year. In addition, net equipment operations sales hit $7.260 billion for the present quarter, reaching $11.958 billion over the first six months; compared against $7.107 billion and $11.876 billion for the same periods from the year prior.
Rates of foreign currency are not expected to create any material effect on its equipment sales for either the third quarter or full year.More news: Delphi, BMW Group to Develop Self-Driving Car
Deere has demonstrated its continued ability to produce strong results through every phase of its business cycle. Results for the quarter were assisted by increased shipment volumes and price realization, partially offset by higher warranty costs and a less-favorable sales mix.
The company has, admittedly, taken a bit of a blow over the past few years, as bumper corn and soybean crop harvests drove prices down, leaving farmers with far less expendable cash to spend on new equipment. The forecast reflects moderate economic growth worldwide. In forestry, global industry sales are expected to be down about 5 percent due to soft conditions in North America. The company posted earnings of $1.52 billion for 2016.