Deere's second quarter sets record for income.

Profits Soar

Deere's Second Quarter Sets Record for Income

Deere & Co. has reported second quarter 1990 net income of $144.0 million, a company record and an increase of 10 percent over net income of $130.5 million in the comparable quarter of 1989.

The income figures derived from worldwide net sales and revenues of $2.120 billion in the second quarter, up 11 percent from $1.915 billion in last year's second quarter. Net sales to farm and industrial equipment dealers were $1.852 billion in the latest quarter, ended April 30, while revenues from credit, insurance and health care operations were $237 million.

Figures for the first half of the fiscal year were also up strongly, with worldwide net income of $222.5 million from sales and revenue of $3.760 billion, compared to 1989's first-half net income of $178.9 million on sales of $3.287 billion.

A company statement said North American retail sales remained strong in agricultural and lawn and grounds care products, and said overseas retail demand for farm and industrial equipment was higher during the first two fiscal quarters of 1990, compared to 1989's first half. It also noted that financial results for the first half of last year were adversely affected by manufacturing start-up for new combines and large tractors.

A joint statement attributed to retiring chairman Robert A. Hanson and his successor, Hans W. Becherer, said that despite lower construction activity in some areas, retail sales of Deere industrial equipment in North America were higher in this year's second quarter and first half than in the same periods in 1989.

"North American agricultural conditions continue to be favorable, and outlook for retail sales of John Deere agricultural equipment remains positive," Hanson and Becherer said. "Improved moisture conditions should stimulate demand for our lawn and grounds care equipment and retail sales of these products are also expected to be higher this year. Outside the United States and Canada, retail sales of John Deere farm equipment are still expected to be modestly higher this year.

"Our outlook for North American retail sales of John Deere industrial equipment has become cautious, as increased interest rates and slower construction activity in some areas, particularly the eastern United States and Canada, are affecting demand. However, total construction expenditures are expected to remain flat in 1990 and certain sectors such as forestry production and expenditures for highways and streets should show improvement."