Deere Profits Expand

NEW YORK - May 17/05 - SNS -- Deere & Company reported net income of U.S. $604 million on sales of $3,292 million during the second quarter ending April 30, compared to a net of $477 million on sales of $2,816 million during the same quarter of the previous fiscal year.

This lifted net income for the first half of the current fiscal year to $827 million on sales of $5,302 million, compared to net earnings of $648 million on sales of $4,412 million last year.

Company equipment sales in the U.S. and Canada rose 13% for the quarter and 15% for the six months. Outside the U.S. and Canada, sales increased by 11% and 13% for the respective periods excluding currency translation and by 16% and 19% on a reported basis.

Deere's equipment divisions reported operating profit of $856 million for the quarter and $1.118 billion for six months, compared with $726 million and $924 million last year. The improvements were primarily due to improved price realization, increased shipments, efficiencies related to stronger production volumes and lower post retirement benefit costs. Partially offsetting these factors for both periods were higher raw material costs.

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