Deere & Company posts strong Q2
Deere & Company, the manufacturer of John Deere tractors, mowers, and construction equipment, reported second quarter 2018 net sales soared 29% to $10.72 billion for the second quarter from second quarter 2017 net sales of $8.29 billion in the second quarter 2017.
Sales for the first 6 months of 2018 increased 20% to $17.63 billion from sales of $13.91 billion for the first half of 2017.
The Moline, Ill.-based company also reported a net income of reported a net income of $1.21 billion for the second quarter, a 50% increase from a net income of $808.5 million for the second quarter 2017.
For the first six months of the year Deere posted a net income of $673.2 million, falling 33% from a net income of $1 billion in first six months of 2017.
Second-quarter results included a favorable net adjustment to provisional income taxes of $174 million, while the first six months reflected an unfavorable net provisional income tax expense of $803 million, the company said.
Without these adjustments, net income attributable to Deere & Company for the second quarter and first six months of the year would have been $1.034 billion.
"John Deere reported another quarter of strong performance helped by a broad-based improvement in market conditions throughout the world and a favorable customer response to our lineup of innovative products," said Samuel Allen, chairman and CEO of Deere & Company. "Farm machinery sales in both North and South America are making solid gains and construction equipment sales are continuing to move sharply higher.
Allen noted that the company has “made significant progress” working with its suppliers to ramp up production and ensure that 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,” Allen said.
Sales of Deere’s construction and forestry products increased 84% for the quarter and 73% for the first six months. Agriculture and turf products sales rose 22% for the quarter and 20% for the first six month.
Sales for the first 6 months of 2018 increased 20% to $17.63 billion from sales of $13.91 billion for the first half of 2017.
The Moline, Ill.-based company also reported a net income of reported a net income of $1.21 billion for the second quarter, a 50% increase from a net income of $808.5 million for the second quarter 2017.
For the first six months of the year Deere posted a net income of $673.2 million, falling 33% from a net income of $1 billion in first six months of 2017.
Second-quarter results included a favorable net adjustment to provisional income taxes of $174 million, while the first six months reflected an unfavorable net provisional income tax expense of $803 million, the company said.
Without these adjustments, net income attributable to Deere & Company for the second quarter and first six months of the year would have been $1.034 billion.
"John Deere reported another quarter of strong performance helped by a broad-based improvement in market conditions throughout the world and a favorable customer response to our lineup of innovative products," said Samuel Allen, chairman and CEO of Deere & Company. "Farm machinery sales in both North and South America are making solid gains and construction equipment sales are continuing to move sharply higher.
Allen noted that the company has “made significant progress” working with its suppliers to ramp up production and ensure that 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,” Allen said.
Sales of Deere’s construction and forestry products increased 84% for the quarter and 73% for the first six months. Agriculture and turf products sales rose 22% for the quarter and 20% for the first six month.