Deere posts strong Q3

Moline, Ill.-based Deere & Co. has reported third-quarter net income of $617.0 million, up 47% from $420.0 million in the year-ago period.

Net sales increased 16% to $6.837 billion for the third quarter ended July 31. Net sales of the equipment operations were $6.224 billion for the quarter, up 18% compared with $5.283 billion in the third quarter of 2009.

"While we have benefited from positive conditions in the U.S. farm sector, particularly in terms of demand for large equipment, European markets are down sharply,” said Samuel Allen, chairman and CEO. “Demand for construction and forestry equipment is improved from last year but still remains far below normal levels. Nevertheless, the company has continued to extend its competitive position as a result of our focus on serving customers with advanced new products, while keeping a tight rein on costs and assets."

For the first nine months, net income totaled $1.408 billion, up 28% from $1.096 billion last year. Net sales for the nine-month period were up 6% to $18.803 billion. Net sales of the equipment operations for this period were $17.009 billion, up 6% from $16.030 billion in the corresponding period last year.