Deere Sees Record-Setting $1 Billion in Earnings

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MOLINE, Illinois - Moline-based agriculture equipment giant Deere and Company says it had another record-setting quarter, earning $997 million in the third quarter that ended July 31st.

"Deere's success is a reflection of considerable strength in the farm sector, especially in North and South America," Deere chairman and chief executive officer Samuel Allen announced in a company news release.

"John Deere is well on the road to another year of impressive performance," he said.

For the first nine months of the year, Deere's net income totaled $2.730 billion compared with $2.377 billion last year.

The Ag and Turf Division saw an eight percent sales increase in the third quarter, but the construction and Forestry division saw an 11 percent drop.

The company blames decreased shipment volumes, increases in production costs, an unfavorable product mix and higher selling, administrative and general expenses.

Worldwide, Deere's net sales and revenues increased 4 percent for the third quarter.

But the record-setting revenues could end here.

The company says the fourth quarter could see a five percent drop in revenues.

"Last year's fourth-quarter sales were particularly strong," said Allen.

He says factories were running at a high rate to catch up with customer orders.

Even with the comparison, Deere projects a third straight year of record earnings at the end of the year.