MOLINE, Ill. – Deere & Co. said Tuesday first-quarter profits increased 30 percent as demand for farm and construction equipment rose.
Net income increased to $222.8 million, or 89 cents per share, compared with net income for the same period last year of $170.8 million, or 68 cents per share. Net sales and revenues grew 18 percent to $4.127 billion compared with $3.484 billion a year ago.
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Agricultural equipment increased 26 percent for the quarter because of higher shipments resulting from strong retail demand. Operating profit nearly doubled to $163 million compared with $85 million last year. The operating-profit improvement was primarily driven by higher worldwide sales and efficiencies related to stronger production volumes.
Construction and forestry division sales rose 33 percent for the quarter, reflecting strong retail sales. Operating profit improved to $101 million compared with $93 million for the same period last year. Excluding last year's $30 million pretax gain from the sale of an equipment rental company, operating profit improved 60 percent.
Commercial and consumer equipment sales declined 8 percent for the quarter as the division further aligned shipments and production levels with seasonal demand. The lower shipments and production volumes contributed to an operating loss of $2 million for the quarter vs. an operating profit of $20 million last year.