SA broad-based improvement in global market conditions helped Deere & Co to increase its worldwide net sales and revenues by 29% to US $10.72 billion during the second quarter of 2018 (ended April 29). Net income of US$1.2 billion for the quarter compares with US$808 million for the same quarter in 2017.
Net sales are up 27% to US$17.63 billion for the first six months, and the company’s worldwide sales of agriculture and turf equipment are forecast to increase by about 14% for the 2018 fiscal-year.
“Farm machinery sales in both North and South America are making solid gains,” said chairman and CEO Samuel R. Allen, who reckons Deere is making significant progress working with its suppliers to ramp up production and ensure that products reach customers in a timely manner. “At the same time, we are experiencing higher raw-material and freight costs, which are being addressed through a continued focus on structural cost reduction and future pricing actions.”
Looking ahead, higher demand for large equipment is forecast to increase industry sales for farm machinery in the US and Canada by around 10% by the end of the 2018. Favourable conditions in the dairy and livestock sectors are expected to result in a full-year industry sales increase in the EU of about 5%.