CHICAGO Agricultural and
industrial equipment maker Deere & Co. posted higher net
income and revenue in its fiscal first quarter ended Jan. 31,
but its outlook remains cautious.
Net income for the quarter rose
21.9 percent to nearly $650 million on a 9.7-percent increase
in global revenue to $7.42 billion, the Moline, Ill.-based
company said Feb. 13.
"With our 11th consecutive
quarter of record earnings, Deere has started 2013 on a
positive note and is setting the stage for another successful
year," chairman and chief executive officer Samuel R. Allen
said in a statement released with the companys earnings
U.S. and Canadian equipment
sales rose 18 percent for the quarter. Outside the region, net
sales rose 2 percent.
Equipment operations reported an
operating profit of $837 million for the quarter, up 19.9
percent year on year, as a result of higher shipping volumes
and price realization. Increased production costs were related
primarily to overhead expenses for manufacturing in support of
growth, new products and emissions requirements for engines,
Deere projects equipment sales
will rise about 6 percent in fiscal 2013 and will be up about 4
percent for the second quarter vs. the same fiscal 2012
While Deere aims to continue on
its path of growing profitability, persistent global economic
and fiscal concerns warrant continued caution, the company
"(Our) near-term outlook is being tempered by uncertainties
over fiscal, economic and trade issues that are undermining
business confidence and restraining growth," Allen said.