Deere Profits Decline

NEW YORK - May 16/07 - SNS -- Deere and Company reported net income of U.S. $624 million on sales of $3,498 million for the second quarter ending April 30, compared to a net of $745 million on sales of $3,068 million during the same three-month period last year.

This lifted net income for the first half of the current fiscal year to $862 million on sales of $5,579 million, compared to a net of $981 million on sales of $4,962 million last year.

Despite the decline in net income, the company said "improving conditions in the global farm sector, coupled with a positive customer response to the company's innovative product lineup, are continuing to drive strong results."

Net sales of the worldwide equipment operations increased 4% for both the quarter and six months. This included positive effects for currency translation and price changes of 4% for both the quarter and six months. Equipment net sales in the U.S. and Canada were down 3% for the quarter and down 4% for the year to date. Net sales outside the U.S. and Canada increased by 22% for the quarter and 23% for six months, including a positive currency-translation effect of 7% for both periods.

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