Deere Q1 earnings from $681.1 million to $387 million
Worldwide net sales and revenues for the first quarter decreased 17 percent, to $6.383 billion, compared with $7.654 billion last year. Net sales of the equipment operations were $5.605 billion for the quarter compared with $6.949 billion a year ago.
Net sales of the worldwide equipment operations declined 19 percent for the quarter. Sales included price realization of 1 percent and an unfavorable currency-translation effect of 2 percent. Equipment net sales in the United States and Canada decreased 14 percent.
Outside the U.S. and Canada, net sales were down 28 percent, with an unfavorable currency-translation effect of 5 percent.
Deere's equipment operations reported operating profit of $414 million for the quarter, compared with $891 million last year. The decline for the quarter was due primarily to lower shipment volumes and the impact of a less favorable product mix, partially offset by lower selling, administrative and general expenses and price realization.
Net income of the company's equipment operations was $241 million for the quarter, compared with $543 million in 2014.
Financial services reported net income attributable to Deere & Company of $156.8 million for the quarter compared with $142.2 million last year.
The improvement was primarily due to growth in the credit portfolio and higher insurance margins, partially offset by less favorable financing spreads. Last year's results also benefited from a more favorable effective tax rate. ■