Net income attributable to Deere & Company was $649.7 million, or $1.65 per share, for the first quarter ended January 31, compared with $532.9 million, or $1.30 per share, for the same period last year.
Worldwide net sales and revenues for the first quarter increased 10 percent, to $7.421 billion, compared with $6.767 billion last year. Net sales of the equipment operations were $6.793 billion for the quarter compared with $6.119 billion a year ago.
"With our eleventh consecutive quarter of record earnings, John Deere has started 2013 on a positive note and is setting the stage for another successful year," said Samuel R. Allen, chairman and chief executive officer. "These results are further proof of the adept execution of operating and marketing plans aimed at expanding our global market presence while maintaining a tight grip on costs and assets," he said. "As a result, Deere remains well-positioned to earn solid profits in today’s fragile global economy and, longer term, to benefit from major trends that we continue to believe hold great promise for the company and its customers and investors."
Summary of Operations
Net sales of the worldwide equipment operations rose 11 percent for the quarter. Sales included price increases of 3 percent and an unfavorable currency-translation effect of 1 percent. Equipment net sales in the United States and Canada increased 18 percent for the quarter. Outside the U.S. and Canada, net sales increased 2 percent for the quarter, including an unfavorable currency-translation effect of 3 percent.
Deere’s equipment operations reported operating profit of $837 million for the quarter, compared with $698 million last year. Results benefited from higher shipment volumes and price realization. These factors were partially offset by increases in production costs, selling, administrative and general expenses, warranty costs, and research and development expenses. The increased production costs related primarily to manufacturing-overhead expenses in support of growth, new products, and engine-emission requirements.
Net income of the company’s equipment operations was $525 million for the quarter, compared with $416 million last year. The same operating factors mentioned above, along with a lower effective tax rate and increased interest expense, affected the quarterly results.
Financial services reported net income attributable to Deere & Company of $132.9 million for the quarter compared with $119.1 million last year. The improvement was primarily related to growth in the credit portfolio and higher crop insurance margins, partially offset by increased selling, administrative and general expenses. In addition, last year’s results benefited from revenue related to wind energy credits.