Deere & Company is on track to break another annual earnings record
May 15, 2013
Deere & Company set another earnings record in the second quarter, and this time it's an all-time high for any quarter. Deere says net income totalled nearly 1.08 billion dollars for February, March, and April, or $2.76 per share, compared to $2.61 a year ago. It's also the 12th quarterly earnings record in a row.
Spokesman Ken Golden says agriculture and turf equipment sales rose 12 percent in the second quarter. But sales of construction and forestry equipment dropped five percent. "The construction equipment market is weaker than we thought because of a lack of clarity in fiscal policy. It's also been wet in North America, and for Deere, North America is the largest part of our construction markets."
But he's optimistic that demand for backhoes, bulldozers, and excavators will eventually recover.
Golden says Deere is now earning the same amount in a single quarter that it earned in an entire year in 1998. "The results speak to our continuing focus on expanding, selling more products to customers who truly see value in them. We're listening to them, expanding product offerings to meet their needs. And we're expanding product lines. For instance, construction in China, Brazil and Russia. All of these things create a company that's much more global and able to benefit from when markets are strong in one place and not so strong in other places."
Overall, second quarter sales increased nine percent, to $10.9 billion. And that's another quarterly record for the company. When its fiscal year ends next fall, Deere now predicts it will set another annual earnings record at 3.3 billion dollars.