Deere turns big Q1 profit
Deere & Company reported total first quarter 2019 revenue of nearly $8 billion, rising 15% from 2018 first quarter total revenue of nearly $7 billion.
First quarter sales from equipment operations rose 16% to $6.94 billion from $5.97 billion for the corresponding quarter a year ago.
Moline, Ill.-based Deere also reported a net income of $498 million for the quarter in comparison to a net loss of $535 million in the first quarter 2018.
Impacting first-quarter 2018 results were charges to the provision for income taxes due to U.S. tax reform legislation. Without the tax reform charges, first-quarter 2018 net income results would have been $442.1 million.
According to Samuel Allen, chairman and CEO of Deere & Company, the first quarter featured numerous hurdles for the heavy equipment, tractor, mower manufacturer.
“Although Deere has continued to make solid progress on a number of fronts and reported higher earnings for the quarter, our results were hurt by higher costs for raw materials and logistics as well by customer concerns over tariffs and trade policies," Allen said. "These latter issues have weighed on market sentiment and caused farmers to become more cautious about making major purchases. At the same time, sales of John Deere construction and forestry machinery have continued at a strong pace.”
Company equipment sales are projected to increase by about 7% this year, the company said.
First quarter sales from equipment operations rose 16% to $6.94 billion from $5.97 billion for the corresponding quarter a year ago.
Moline, Ill.-based Deere also reported a net income of $498 million for the quarter in comparison to a net loss of $535 million in the first quarter 2018.
Impacting first-quarter 2018 results were charges to the provision for income taxes due to U.S. tax reform legislation. Without the tax reform charges, first-quarter 2018 net income results would have been $442.1 million.
According to Samuel Allen, chairman and CEO of Deere & Company, the first quarter featured numerous hurdles for the heavy equipment, tractor, mower manufacturer.
“Although Deere has continued to make solid progress on a number of fronts and reported higher earnings for the quarter, our results were hurt by higher costs for raw materials and logistics as well by customer concerns over tariffs and trade policies," Allen said. "These latter issues have weighed on market sentiment and caused farmers to become more cautious about making major purchases. At the same time, sales of John Deere construction and forestry machinery have continued at a strong pace.”
Company equipment sales are projected to increase by about 7% this year, the company said.