MOLINE, Ill. - Deere & Company announced Wednesday the company’s second quarter earnings totaled $623.6 million, driven by strong global farm growth.
Worldwide net sales and revenues increased five percent to $6.882 billion for the second quarter and were up five percent to $11.308 billion for the first six months.
"Advanced product offerings that help John Deere customers be more profitable and productive are supporting our positive financial performance and expanded global market presence," Robert W. Lane, chairman and chief executive officer said. "At the same time, we are making further progress holding the line on asset levels while effectively serving the needs of customers throughout the world."
Net sales of the worldwide equipment operations increased four percent for both the quarter and for six months. Equipment net sales in the U.S. and Canada were down three percent for the quarter and down four percent for the year to date.
Net sales outside the U.S. and Canada increased by 22 percent for the quarter.
Deere's equipment divisions reported an operating profit of $829 million for the quarter and $1.099 billion for six months. The impact of higher sales volumes from the company's agricultural-equipment division largely offset lower construction-equipment volumes in both periods.
Company equipment sales are projected to increase by approximately six percent for full-year 2007 and to be up about five percent for the third quarter.
The company’s agricultural division sales increased 14 percent for the quarter and 12 percent for six months. Sales increased due to higher volumes, improved price realization, and the favorable effects of currency translation. Operating profit for both periods was higher primarily due to improved price realization and higher sales volumes.
The continued global demand for agricultural products and farm commodities remains quite strong, driven by growing economic prosperity and robust demand for renewable fuels.