Deere reports higher earnings; sales up 29 percent in second quarter
Deere & Co. ramped up production in the second quarter to meet increased demand as revenues increased by nearly 30 percent. Deere reported net income of $1.2 billion for the second quarter ended April 29, or $3.67 per share, compared with net income of $808.5 million, or $2.50 per share, for the quarter ended April 30, 2017. For the first six months of the year, net income attributable to the company was $673.2 million, or $2.05 per share, compared with $1 billion, or $3.14 per share, for the same period last year. Worldwide net sales and revenues increased 29 percent, to $10.7 billion, for the second quarter and rose 27 percent, to $17.6 billion, for six months. “Farm machinery sales in both North and South America are making solid gains and construction equipment sales are continuing to move sharply higher,” Deere Chairman and CEO Samuel Allen said in an earnings release. Allen said Deere made significant progress working with its suppliers to ramp up production during the quarter to ensure products reach customers in a timely manner. “At the same time, we are experiencing higher raw material and freight costs, which are being addressed through a continued focus on structural cost reduction and future pricing actions,” he said.