Farm, construction and forestry equipment manufacturer Deere & Co. reported a 17 percent increase in net income to $1.06 billion for the three months ending April 30. Worldwide net sales and revenues for the second quarter increased 12 percent to $10.01 billion. Both net income and revenue for the first half of the year rose 12%.
"John Deere is well on its way to a year of outstanding performance after reporting an eighth consecutive quarter of record earnings," said Samuel R. Allen, chairman and chief executive officer. "Our results are a reflection of positive conditions in the global farm economy, which is continuing to show impressive strength and endurance."
Agriculture-and-turf-division sales increased 11 percent for the quarter and 10 percent for six months. Division operating profit rose 21% to $1.4 billion for the second quarter.
Construction-and-forestry-division sales increased 26 percent for the quarter and 24 percent over the first half of the year. Division operating profit rose 13% to $119 million for the quarter.
Deere's worldwide sales of agriculture and turf equipment are forecast to increase by about 15 percent for full-year 2012. Sales of construction and forestry equipment are forecast to increase by about 20 percent. The construction and forestry gain reflects strength in the rental, energy, material-handling, industrial, and international sectors. Deere says it is benefiting from growth in sales to independent rental companies, which are upgrading and replenishing their fleets, and are being supported by a range of advanced new products and by geographic expansion.
"Our extensive investments in new products and additional global capacity are moving ahead at an accelerated rate," Allen said, pointing out there are more than a dozen major projects under way throughout the world, including seven new factories. "These investments are essential to the success of our longer-term growth objectives, which we believe are firmly on track. They also put Deere in a sound position to respond to a rising global need for food, shelter, and infrastructure in the years ahead."