Deere (DE) Reports Solid Q1 Results Ahead of New-Product Launch
Worldwide net sales increased 11 percent to $6.767 billion, compared with $6.119 billion during the same quarter last year and the Street’s consensus of $6.5 billion. Net sales of the equipment operations were $6.119 billion, compared with $5.514 billion a year ago.
Net income was $532.9 million, or $1.30 per share, compared with $513.7 million, or $1.20 per share, for the same period last year. The Street’s consensus was calling for $1.24 per share in earnings. Operating profits for the quarter fell 21 percent year over year from $214 million to $170 million.
The strong growth was largely driven by a 22 percent increase in construction and forestry sales as operating profits grew 41 percent year over year.
The company provided some color into 2012:
- Industry farm-machinery sales in the U.S. and Canada are forecast to increase by about 10 percent in 2012
- U.S. and Canada industry sales of turf and utility equipment are expected to increase slightly in 2012
- World forestry markets are projected to be about the same in 2012 mainly due to economic concerns in Europe
- Full-year 2012 net income attributable to Deere & Company for the financial services operations is expected to be approximately $460 million
- Administrative and general expenses in support of enterprise growth initiatives are projected to be higher for the year