Deere Profit Rises in First Quarter

NEW YORK - Feb 14/06 - SNS -- Deere & Company reported net income of U.S. $236 million on sales of $4,202 million during the first quarter ending January 31, compared to a net of $223 million on sales of $3,935 million during the same quarter last year.

Excluding the effect of currency translation and price changes, worldwide equipment sales were up 4% for the quarter. On a reported basis, equipment sales in the U.S. and Canada increased 9% for the quarter. Outside the U.S. and Canada, sales increased by 1% excluding currency translation but were down 5% as reported.

Deere's equipment divisions had operating profit of $261 million for the quarter, compared with $262 million last year. Operating profit was negatively affected by lower manufacturing volumes and the expensing of stock options. These items were mostly offset by higher shipments, improved price realization and lower retirement benefit costs.

Trade receivables and inventories at the end of the quarter were $5.911 billion, or 30% of previous 12-month sales, compared with $5.934 billion, or 32% of sales, a year ago.

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