Construction equipment helps Deere

John Deere’s sales of construction and forestry equipment were up +2% in the three months ending April 30, to US$ 1.63 billion. Revenues for the first six months of the company’s fiscal year to the end of April were up +7% to US$ 3.12 billion, compared to the same period last year.

The rise came as the company’s much larger agricultural and turf equipment business saw revenues fall -26% in the first six months to US$ 9.85 billion. The company said global markets for agricultural equipment were weak.

Operating profit for the construction and forestry division was also sharply improved at US$ 335 million for the first six months, compared to US$ 226 million for the same period last year, a +48% improvement. Meanwhile, operating profit for the agriculture and turf division more than halved to US$ 907 million.

A company statement on the construction and forestry results said, “Operating profit improved for the quarter mainly due to price realisation and lower selling, administrative and general expenses, partially offset by the unfavourable effects of foreign currency exchange. Six-month results were higher primarily due to higher shipment volumes and price realisation, partially offset by unfavourable foreign-currency exchange effects.”