Deere & Company today announced worldwide net income attributable to Deere & Company of $788.0 million for the third quarter ended July 31, compared with $712.3 million for the same period last year.
For the first nine months of the year, net income attributable to Deere & Company was $2.377 billion, compared with $2.130 billion last year.
Net sales of the worldwide equipment operations increased 16 percent for the quarter and 13 percent for nine months compared with the same periods a year ago. Sales included price realization of 5 percent for the quarter and 4 percent year-to-date and an unfavorable currency-translation effect of 5 percent for the quarter and 3 percent for nine months.
Equipment net sales in the United States and Canada increased 28 percent for the quarter and 18 percent year to date. Outside the U.S. and Canada, net sales were essentially unchanged for the quarter and increased 7 percent for nine months, with unfavorable currency-translation effects of 11 percent and 6 percent for these periods.
Market Conditions & Outlook
Agriculture & Turf - Deere's worldwide sales of agriculture and turf equipment are forecast to increase by about 13 percent for full year 2012, including a negative currency-translation impact of about 4 percent.
Industry sales for agricultural machinery in the U.S. and Canada are forecast to be up more than 10 percent for 2012. Full-year industry sales in the EU27 are now forecast to be flat as strength in the northern European market offsets weakness in the South. Sales in the Commonwealth of Independent States are expected to be up strongly in 2012.
U.S. and Canada industry sales of turf and utility equipment are expected to be flat to up 5 percent for 2012, reflecting the drought conditions in the U.S.
Construction & Forestry -Deere's worldwide sales of construction and forestry equipment are forecast to increase by about 17 percent for 2012. While construction equipment sales in the U.S. continue to show strong recovery, Deere has experienced slower than expected sales activity in some international markets. World forestry markets are projected to be flat in comparison to 2011.
Financial Services - Full year 2012 net income attributable to Deere & Company for the financial services operations is expected to be approximately $450 million, somewhat lower than the prior year. The forecast decline is primarily due to an anticipated increase in selling, administrative and general expenses, narrower financing spreads and higher reserves for crop insurance claims, partially offset by growth in the credit portfolio.
Read the full earnings press release.