Deere and Company set records for profits and sales for the three month period that ended April 30th. Ken Golden, a spokesperson for the Quad Cities based manufacturer, says the second quarter of the year is typically the strongest for the company…but this year, it was exceptionally strong.
"In this particular year, we’ve set an all-time record for one quarter in both net income and in sales. It’s a particularly proud moment for the company and it’s employees," Golden said.
Deere reported second quarter profits of 763.5 million dollars. That compares to 623.6 million dollars in the second quarter last year. Sales in Deere’s agriculture sector were up 34% overall. Worldwide sales for all of Deere’s products rose 18%, but nearly doubled outside the U.S. and Canada.
"Our sales, in this particular quarter, were up 46% outside the U.S. and Canada. That means that we are achieving our goal of growing across the globe," Golden said. Deere and Company is on pace for a record year in both profits and sales, despite the U.S. economic downtown and challenges that include high steel prices and rising transportation costs.
"The farm economy is not in the same situation as the general economy. All across the globe, farmers are in a good position to buy more equipment. Their commodity prices are high and their income is steady because of the growing need for their commodities in improved diets and in biofuels," Golden said.
In order to meet growing demand, Deere has announced several expansion projects. One of those projects is a $90 million expansion of the large tractor plant in Waterloo. The company plans to increase capacity at the Waterloo facility by 25%.