The Triangle, N.C.-based consumer arm of Deere & Co. saw year-over-year sales and profit jump in the second quarter on the acquisition of a company that provides lawn-care and landscaping products.
Deere's Commercial & Consumer division, which employs about 1,000 at locations in Cary and Fuquay-Varina, boosted sales to $1.35 billion in the quarter - up 15 percent from $1.17 billion a year ago. Income also rose, advancing 63 percent to $127 million from $78 million.
The company said the gains came from better pricing as well as revenue from LESCO, a Cleveland, Ohio, company that Deere bought in May. Specifically, Deere said, the LESCO acquisition accounted for 11 percentage points of the 15-point increase in revenue.
Deere reaffirmed its revenue estimate for the commercial division of 11 percent growth for 2007. The double-digit growth is welcome news for the division, which has been hurt by sagging demand after growing robustly for much of the decade.
Overall, Moline, Ill.-based Deere & Co. had earnings of $537.2 million, or $2.37 per share, up from $436 million, or $1.85 per share, in the year-ago period. Revenue increased 6 percent to $6.63 billion.
Analysts polled by Thomson Financial had expected, on average, earnings per share of $1.99 on $6.65 billion in revenue. Deere said overseas sales and aggressive inventory management allowed it to boost the bottom line.