Thanks to higher shipment volumes and an increase in sales within its agriculture and turf division, John Deere reported a jump in income of 26 percent for its third financial quarter.
Net income for the company was $996.5 million for the quarter, compared to $788 million for the same period last year. Net sales for the quarter were at $10 billion, an increase of 4 percent over last year.
In light of the quarter, Deere has raised its expectations for the end of the financial year to net income of $3.45 billion. So far, for the first nine months of the year, Deere has net sales of $28.3 billion and net income of $2.7 billion.
“Deere’s success is a reflection of considerable strength in the farm sector, especially in North and South America,” said Samuel R. Allen, Deere’s chairman and chief executive officer.
Farm equipment sales increased 8 percent during the quarter compared to the same period last year, while operating profit increased 31 percent to $1.336 billion.
Meanwhile, construction and forestry equipment sales declined 11 percent during the quarter. Operating profit fell 5 percent to $107 million due to decreased shipment volumes, Deere reported.
In terms of outlook, Deere projects equipment sales to finish the year up 5 percent to $3.45 billion, despite a forecasted 5-percent year-over-year decline in the fourth quarter.