Deere profits surge with demand
WORLD NEWS: Farming equipment maker John Deere has today reported a stronger than expected 26 per cent increase in third-quarter earnings on strength in the farming sector in North and South America.
Among the highlights include:
- Income jumps 26 per cent on 4 per cent gain in net sales and revenues.
- Performance driven by strong profits in farm machinery and financial services.
- Extensive growth investments remain on track, helping expand company’s global footprint.
- Full-year income forecast raised to US$3.45bn.
Deere, which makes agricultural tractors as well as forestry and construction equipment, said it earned US$996.5m, or US$2.56 a share, in the three months to July, up from US$788m, or US$1.98 a share, during the same period last year. Sales rose 4 per cent to US$10.01bn, from US$9.59bn.
The Illinois-based company said sales of all new equipment, including John Deere tractors, rose 4 per cent during the quarter. The rise in revenues was driven by sales of agricultural and turf equipment, which account for nearly 80 per cent of all sales and rose 8 per cent year on year.