Moline, Ill.-Deere reported a 54 percent increase in net income, to $369 million ($.83 per diluted share ) on sales of $5.2 billion for the first quarter ending Jan. 31, 2008, versus the year-ago $239 million ($.52 per share) and $4.4 billion. Deere’s commercial and consumer division, which includes input company Lesco Inc., reported a 16 percent increase in sales during the quarter, to $743 million from the year-ago $641 million, though operating profits were down to $8 million from the year-ago $38 million. Deere attributed this to higher selling, administrative, and general expenses from Lesco, partially offset by higher sales volumes. Deere sales for the division are expected to be up 8 percent for the year, including 7 percent from a full year of Lesco sales. Deere hopes that gains from new products will help it offset market weakness related to the U.S. housing slowdown and rising costs for fertilizer and other lawn maintenance supplies. Overall, Deere is upbeat, expecting a 17 percent increase in equipment for full year 2008 and a 23 percent increase in the second quarter. Deere’s net income increase for the year is $2.2 billion, and $700-$725 million for the quarter.
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