DEERE & CO Quarterly Report for Q3 Ended Jul 29, 2018

Summary

Deere & Company reported a strong third quarter for fiscal year 2018, with net sales and revenues increasing by 32% to $10.3 billion. This growth was significantly driven by the acquisition of Wirtgen Group and robust performance in both the Agriculture and Turf, and Construction and Forestry segments. Net income attributable to Deere & Company surged by 42% to $910.3 million, translating to diluted earnings per share of $2.78, a substantial increase from $1.97 in the prior year's quarter. The company's outlook for the full fiscal year also reflects optimism, with projected net income attributable to Deere & Company forecasted to be around $2.36 billion. Despite facing cost pressures from raw materials and freight, Deere is implementing cost management and pricing strategies to mitigate these impacts. The company's financial services segment also showed improved profitability, benefiting from a larger portfolio and lower credit loss provisions.

Key Highlights

• 1Significant 32% year-over-year increase in net sales and revenues to $10.3 billion for Q3 2018.
• 2Net income attributable to Deere & Company jumped 42% to $910.3 million ($2.78 per diluted share) in Q3 2018.
• 3The acquisition of Wirtgen Group significantly contributed to the revenue growth, particularly in the Construction and Forestry segment.
• 4Agriculture and Turf segment sales increased by 18% due to higher volumes, favorable pricing, and lower warranty expenses.
• 5Financial Services segment reported improved net income of $151.2 million, driven by a higher average portfolio and reduced credit loss provisions.
• 6Company raised its full-year net income forecast to approximately $2.36 billion, indicating strong confidence in future performance.
• 7Despite cost pressures in raw materials and freight, the company is leveraging pricing strategies and cost management.

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