Construction equipment vendor Deere & Co. posted a second-quarter net income of $547.5 million, jumping 16%, on sales of $7.1 billion, up 6%, over the same period last year. Construction and forestry machine sales rose 52% for the quarter and earnings shifted into the black due to increased shipments, favorable currency exchange rates and price increases of about 2%. Deere’s construction and forestry division, bouncing back from last year’s anemic lows, booked an operating profit of $36 million for the quarter, compared with a quarterly loss last year of $75 million. The Moline, Ill.-based company upped its earnings forecast for the year to $1.6 billion on annual sales growth of 11% to 13%. It had previously expected $1.3 billion on 6% to 7%.
Deere’s Positive Second-Quarter Numbers Hint at Recovery
May 26, 2010