The Deere & Co. Department of Civil Engineering and Forestry began a new fiscal year with a strong first quarter.
Net sales and earnings from construction and forestry have reached nearly $ 2.3 billion in the three months to January 28, an increase of 31% over the same period last year. Gold said growth was due to encouraging trends in the construction, road construction and forestry industries.
"The economy behind all these industries is solid and demand continues for new equipment," he said.
The increase in sales is partly due to the inclusion of Wirtgen for the entire neighborhood. The German construction company was acquired by Deere in the middle of the first quarter of the last fiscal year. As a result, sales were reflected only in one month of the quarter in the financial year 201
Deere expects to see 13% growth in sales in construction and forestry throughout the financial year. This is a little less than Diwer's original forecast of 15% growth.
However, Gold suggested John Deere Dubuque Works to continue buzzing. "We are still building a lot of equipment and that's good for all factories," he said. "We never talk about specific factories, but Dubuque is part of this trend and they have many products to build. They will continue to be employed. "
Operating profit in the division was $ 229 million in the first quarter, from $ 32 million in the first quarter of the previous year. The lower result for the past year was heavily influenced by the $ 92 million, one-off operating loss associated with the Wirtgen deal.
Total net income amounted to $ 498 million against a loss of $ 535 million in the first quarter of the financial year 2018. Deere Investor Communications Manager Brent Norwood discussed the impact of ongoing commercial problems during a conference call today. This story can not be published, broadcast, rewritten or redistributed without prior permission from TH.