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Deere First Quarter "Better Than Expected"

Deb Wood
Deere and Company

Even though earnings for John Deere fell compared to a year ago, the company still describes Friday's first quarter results as "better than expected." Net income was 903 million dollars, versus 1.2 billion at this time last year

Brent Norwood is the Manager of Investor Communications.

"This year, our net income was reduced - higher production costs as our materials have increased significantly. In addition to that, we had the first three and-a-half weeks of the year were unfavorably impacted by a delayed ratification of our labor agreement with the UAW."

He's referring to the strike that lasted about five weeks last fall.

Sales for the first quarter rose 5 per cent, to 9.5 billion dollars, including a three per cent increase for Construction and Forestry, and 9 per cent for large farm equipment.

Norwood says Deere is optimistic about this year - despite lower government pandemic relief payments, global grain prices are rising.

"Ultimately while our customer base was very appreciative of those government payouts during that period of uncertainty, they would much rather have better underlying economic fundamentals which is what they have today."

As a result, Deere has raised its profit projection for the full year - to between 6.7 and 7.1 billion dollars, up more than 100 million dollars from its forecast in November at the beginning of its fiscal year.

A native of Detroit, Herb Trix began his radio career as a country-western disc jockey in Roswell, New Mexico (“KRSY, your superkicker in the Pecos Valley”), in 1978. After a stint at an oldies station in Topeka, Kansas (imagine getting paid to play “Louie Louie” and “Great Balls of Fire”), he wormed his way into news, first in Topeka, and then in Freeport Illinois. While a graduate student in the Public Affairs Reporting Program at the University of Illinois at Springfield (then known as Sangamon State University), he got his first taste of public radio, covering Illinois state government for WUIS. Here in the Quad Cities, Herb worked for WHBF Radio before coming to WVIK in 1987. Herb also produces the weekly public affairs feature Midwest Week – covering the news behind the news by interviewing reporters about the stories they cover.