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Deere & Company Q1 net income $193.8 million

Staff Writer |
Net income attributable to Deere & Company was $193.8 million, or $0.61 per share, for the first quarter ended January 29.

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This is compared with $254.4 million, or $0.80 per share, for the period ended January 31, 2016.

Worldwide net sales and revenues for the first quarter increased 2 percent, to $5.625 billion, compared with $5.525 billion last year.

Net sales of the equipment operations were $4.698 billion for the quarter compared with $4.769 billion a year ago.

Net sales of the worldwide equipment operations declined 1 percent for the quarter. Sales included price realization of 2 percent and a favorable currency-translation effect of 1 percent.

Equipment net sales in the United States and Canada decreased 8 percent. Outside the U.S. and Canada, net sales increased 11 percent, with a favorable currency-translation effect of 1 percent.

Deere's equipment operations reported operating profit of $247 million for the quarter, compared with $214 million in 2016.

The improvement for the quarter was primarily driven by price realization, partially offset by expenses associated with the previously announced voluntary employee-separation program, higher warranty costs and the unfavorable effects of foreign-currency exchange.

Additionally, the current quarter benefited from a gain on the sale of a partial interest in the unconsolidated affiliate SiteOne Landscape Supply, Inc.

Net income of the company's equipment operations was $80 million for the quarter, compared with $127 million for the same period last year.

In addition to the operating factors mentioned above, a higher effective tax rate in 2017 reduced quarterly results.

Financial services reported net income attributable to Deere & Company of $114.4 million for the quarter compared with $129.4 million last year.

Lower results for the quarter were primarily due to less-favorable financing spreads and voluntary separation expenses.


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