Deere’s net income for the quarter had risen by 4%, while its total net sales and revenues had fallen by 4%
Image: Deere & Company World Headquarters building in Moline, Illinois. (Credit: Wikipedia.org/Ctjf83.)
US-based manufacturer of farm machinery and industrial equipment Deere & Company has reported a net income of $517m for the first quarter ended 2 February 2020, a 4% increase compared to $498m for the previous year quarter ended 27 January 2019.
For the first quarter, the company reported total net sales and revenues of $7.6bn, a 4% decrease compared to $7.9bn for the same period last year.
Net sales of equipment had also fallen from $6.9bn for last year’s first quarter to $6.5bn for this quarter, decreasing at 6%.
The diluted earnings per share for the quarter stood at $1.63, compared to $1.54 per share for the corresponding period of the last year.
Deere’s total costs and expenses for the first quarter amounted to $7.06bn, compared to $7.3bn for the same quarter ended 27 January 2019.
Under the head equipment operations, the company’s net sales were reported at $6.5bn. The operating profit for the period was $466m and the net income was $383m for this year’s first-quarter period.
Compared to last year, the net sales and the operating profit had fallen by 6% and 19%, respectively. But, the operating margin increased by 13%.
Under the head agriculture and turf, the company’s net sales for the period were $4.48bn. Its operating profit was $373m and its operating margin was 8.3%. The net sales had decreased by 4% compared to last year.
Deere & Company CEO John May said: “John Deere’s first-quarter performance reflected early signs of stabilisation in the U.S. farm sector. Farmer confidence, though still subdued, has improved due in part to hopes for a relaxation of trade tensions and higher agricultural exports.
“At the same time, activity in the construction sector has slowed leading to lower sales and profit for our Construction & Forestry division. Also impacting results in Deere’s construction equipment business were our actions to reduce factory production and lower inventories in response to current market conditions.
“Additionally, the quarter included costs of a voluntary employee-separation program, which is among the steps Deere is taking to improve flexibility and efficiency.”