In issuing its second-quarter earnings report this morning, Deere & Co. said that its net sales of the worldwide equipment operations increased 6% for the quarter and were essentially unchanged for 6 months compared with a year ago. Sales included a favorable currency-translation effect of 4% for the quarter and 5% for 6 months and price increases of 2% for both periods. Equipment net sales in the U.S. States and Canada increased 4% for the quarter and declined 1% year to date. Outside the U.S. and Canada, net sales were up 9% for the quarter and 2% for 6 months, with favorable currency-translation effects of 9% and 10% for these periods.
Deere's equipment operations reported operating profit of $988 million for the quarter and $1.303 billion for 6 months, compared with $628 million and $935 million last year.
Ag Equipment Division Performance
Sales of agriculture and turf equipment increased 1% for the quarter largely due to the favorable effects of currency translation and improved price realization, partially offset by lower shipment volumes. Sales were down 2% for the 6 months primarily due to lower shipment volumes, partially offset by the favorable effects of currency translation and improved price realization.
Operating profit was $952 million for the quarter and $1.304 billion year to date, compared with $703 million and $993 million last year. Operating profit was higher in the quarter primarily due to improved price realization, the impact of higher production volumes, the favorable effects of foreign exchange and lower raw-material costs, partially offset by higher postretirement benefit costs. Six-month operating profit was higher largely due to lower raw-material costs, improved price realization and favorable foreign-exchange effects. Partially offsetting these factors was the impact of lower shipment and production volumes and higher postretirement benefit costs.