Deere Reports Increase in First Quarter Income

MOLINE, Ill. - Deere and Company has announced worldwide net income of $222.8 million for the first quarter ended January 31, compared with net income for the same period last year of $170.8 million, or $.68 per share.

Worldwide net sales and revenues grew 18 percent to $4.127 billion for the first quarter compared with $3.484 billion a year ago. Net sales of the equipment operations were $3.526 billion for the quarter versus $2.912 billion last year.

The company's equipment sales in the U.S. and Canada rose 20 percent for the quarter. Outside the U.S. and Canada, sales increased by 16 percent, excluding currency translation, and by 23 percent on a reported basis.

Deere's equipment divisions reported operating profit of $262 million for the quarter, compared with $198 million last year. Excluding last year's gain on the sale of a construction-equipment rental company, equipment operating profit rose 56 percent on a 21 percent increase in sales.

Excluding the impact of currency translation, company equipment sales are expected to increase by six to eight percent for full-year 2005 and by nine to 11 percent for the second quarter. Net income is forecast to be around $1.5 billion for the full year and in the range of $500 million to $525 million for the quarter.

?EUR??,,????'??We're having success expanding our market position on a global basis,?EUR??,,????'?? Robert W. Lane, chairman and chief executive officer said. ?EUR??,,????'??Our strategy is on track to serve customers with products and services that deliver even greater value and productivity. Our efforts to grow a great business are proceeding as planned. As a result, we're confident the company is positioned for another year of exceptional performance in 2005.?EUR??,,????'??