Deere & Company Q1 net income $254.4 million
This compares with $386.8 million, or $1.12 per share, for the same period of 2015.
Worldwide net sales and revenues for the first quarter decreased 13 percent, to $5.525 billion, compared with $6.383 billion last year. Net sales of the equipment operations were $4.769 billion for the quarter compared with $5.605 billion a year ago.
Net sales of the worldwide equipment operations declined 15 percent for the quarter. Sales included price realization of 2 percent and an unfavorable currency-translation effect of 4 percent.
Equipment net sales in the United States and Canada decreased 18 percent. Outside the U.S. and Canada, net sales were down 9 percent, with unfavorable currency-translation effects of 11 percent.
Deere's equipment operations reported operating profit of $214 million for the quarter, compared with $414 million in 2015. The decline for the quarter was due primarily to lower shipment volumes, the unfavorable effects of foreign-currency exchange and the impact of a less favorable product mix.
Partially offsetting these factors were price realization, lower selling, administrative and general expenses and lower production costs. Net income of the company's equipment operations was $127 million for the quarter, compared with $241 million for the same period last year.
In addition to the operating factors mentioned above, a lower effective tax rate benefited results.
Financial services reported net income attributable to Deere & Company of $129.4 million for the quarter compared with $156.8 million last year.
Lower results for the quarter were primarily due to the unfavorable effects of foreign-currency exchange translation, higher losses on residual values primarily for construction-equipment operating leases, less favorable financing spreads and a higher provision for credit losses.
These factors were partially offset by a reduction in selling, administrative and general expenses. ■