Deere & Company (NYSE: DE) shares dipped Friday, on exciting third-quarter results.
The lawn care machinery manufacturer reported net income of $910.3 million for the third quarter ended July 29, 2018, or $2.78 per share, compared with net income of $641.8 million, or $1.97 per share, for the quarter ended July 30, 2017.
Affecting results for the third quarter of 2018 were provisional adjustments to the provision for income taxes due to the enactment of U.S. tax reform legislation on December 22, 2017 (tax reform). Third-quarter results included a favorable net adjustment to provisional income taxes of $62 million, while the first nine months reflected an unfavorable net provisional income tax expense of $741 million.
Without these adjustments, net income attributable to Deere & Company for the third quarter of the year would have been $849 million, or $2.59 per share, and $2.325 billion, or $7.08 per share, respectively.
Worldwide net sales and revenues increased 32%, to $10.308 billion, for the third quarter. Net sales of the equipment operations were $9.286 billion for the third quarter, compared with $6.833 billion for the same periods last year.
Said CEO Samuel Allen, "Deere's third-quarter performance benefited from favorable market conditions and positive response to our advanced product lineup.
"Farm machinery sales in North America and Europe made solid gains, while construction equipment sales moved sharply higher and received significant support from our Wirtgen road-building unit. At the same time, we have continued to face cost pressures for raw materials and freight, which are being addressed through a combination of cost management and pricing actions."
Shares in DE eased $2.65, or 1.9%, to $134.68
