Deere earnings reflect short-term downside of tax reform
Deere & Co. reported a net loss of $535 million, or $1.66 per share, for the quarter ended Jan. 28, compared with profits of $199 million, or 62 cents per share, for the year-ago quarter, according to a release. Profits were affected by $965 million in adjustments that resulted from tax reform legislation that took effect in late December and lowered corporate tax rates to 21 percent from 35 percent. The law resulted in one-time adjustments, including the write-down of deferred assets of $715.6 million and the repatriation of previously untaxed non-U.S. earnings of $261 million. Without the changes, Moline, Ill.-based Deere said it would have declared first-quarter profits of $430 million. Worldwide net sales and revenues for the quarter increased 23 percent to $6.9 billion, compared with $5.6 billion for the same period last year. Net sales of the equipment operations were $5.9 billion for the quarter, compared with $4.7 billion a year ago. Deere anticipates net income for the year of $2.1 billion based on a 29 percent increase in sales. The company reported that markets for agricultural and construction equipment continue to strengthen.