John Deere 2018. 910 million dollars in the third quarter
John-Deere 2018. Deere & Company reported net income of $910.3 million for the third quarter ended July 29, 2018, or $2.78 per share, compared with net income of $641.8 million, or $1.97 per share, for the quarter ended July 30, 2017. For the first nine months of the year, net income attributable to Deere & Company was $1.584 billion, or $4.82 per share, compared with $1.649 billion, or $5.11 per share, for the same period last year.
The adjustments to the income tax provisions due to the enactment of the US tax reform legislation of December 22, 2017 influenced the results for the third quarter and the first nine months of 2018. The results for the third quarter forecast a net positive adjustment of income taxes of $ 62 million, while the first nine months saw provisional tax charges of $ 741 million.
Net sales and net revenues increased 32% to $ 10.308 billion for the third quarter, and 29% for the first nine months to € 27.942 billion. Machine sales reached $ 9.286 billion for the third quarter and $ 25.007 billion for the first nine months.
«Deere’s third-quarter performance benefited from favorable market conditions and positive response to our advanced product lineup» said Samuel R. Allen, chairman and chief executive officer.
«Farm machinery sales in North America and Europe made solid gains, while construction equipment sales moved sharply higher and received significant support from our Wirtgen road-building unit. At the same time, we have continued to face cost pressures for raw materials and freight, which are being addressed through a combination of cost management and pricing actions».
John-Deere corporate outlook and short summary
The net profit was $ 751 million for the third quarter and € 889 million for the first nine months compared to € 506 million and $ 1.21 billion for the corresponding periods in 2017.
In addition to the factors mentioned above, the results for the quarter were positively influenced by $ 58 million and those of the first nine months negatively by 974 million dollars due to adjustments brought about by the tax reform.
Sales of machinery and equipment are expected to grow by around 30% for the fiscal year 2018. Wirtgen will contribute to sales with 12% both in the fourth quarter and on an annual basis.
The exchange rates on foreign currencies will have no foreseeable effect on the sales of machines for the past year, but a negative impact on the fourth quarter of about 3% is expected.
«We continue to believe Deere is well-positioned to capitalize on growth in the world’s agricultural and construction equipment markets», Allen said.
«Replacement demand for large agricultural equipment is driving sales even in the face of tensions over global trade and other geopolitical issues. At the same time, we are heartened by our customers’ enthusiastic response to the advanced features and technology found on our new products».
«What’s more, the powerful global trends of population growth and increased urbanization remain quite vibrant and are putting a positive light on the company’s prospects for the future. As a result, we’re confident Deere is on track to continue its strong performance and deliver significant value to customers and investors in the years ahead».