Here is a look at how Deere & Co.'s divisions performed in the second quarter and first six months:
Agriculture & Turf: The division saw sales increase 1 percent for the quarter and first six months. Operating profit was $1.003 billion for the quarter and $1.215 billion year-to-date, which compared with respective totals of $614 million and $759 million last year.
Deere said the gain on the sale of a partial interest in SiteOne made a significant contribution to the division’s results for both periods.
Deere’s worldwide sales of agriculture and turf equipment are forecast to increase by about 8 percent for fiscal-year 2017. Industry sales for agricultural equipment in the U.S. and Canada are forecast to be down about 5 percent for 2017, reflecting weakness in the livestock sector and the continuing impact of low crop prices.
Industry sales of turf and utility equipment in the U.S. and Canada are expected to be about flat for 2017.
Construction & Forestry: Construction and forestry sales increased 7 percent for the quarter and 1 percent for six months. Operating profit was $108 million for the quarter and $143 million for six months, compared with $74 million and $143 million last year.
Deere’s worldwide sales of construction and forestry equipment are forecast to be up about 13 percent for 2017. In forestry, global industry sales are expected to be down about 5 percent due to soft conditions in North America.
Financial Services: John Deere Capital Corporation reported net income of $64.5 million for the second quarter and $138.7 million year-to-date. That compared with $69.6 million and $169.4 million for the respective periods last year.
Net receivables and leases financed by JDCC were $32.015 billion at April 30, 2017, compared with $33.208 billion at May 1, 2016.
Fiscal-year 2017 net income for the financial services operations is expected to be approximately $475 million.