This summary is based on the second quarter fiscal 2008 earnings call conducted by Deere & Company (DE: chart) on May 14, 2008.

Management:

Vice President, Investor Relations: Marie Z. Ziegler
Senior Vice President and Chief Financial Officer: Michael J. Mack, Jr.
Investor Relations: Susan Karlick
Investor Relations: Karen Thompson
Investor Relations: Bill Ratzburg

Key Investors Issues

- EPS were $1.74 a share compared to $1.36 a share last year.
- Profit rose to $763.5 million from $623.6 million a year earlier.
- Revenue rose 18% to $8.1 billion.

Second Quarter Highlights

Net income was $763.5 million, or $1.74 per share, compared with $623.6 million, or $1.36 per share, for the same period last year.

- Worldwide net sales and revenues increased 18% to $8.097 billion.
- Net sales of the equipment operations increased 19% to $7.469 billion compared with $6.266 billion for the respective period last year. Included were positive effects for currency translation and price changes of 8%.
- Equipment net sales in the United States and Canada were up 6% for the quarter and 7% for the six-month period.

- Net sales outside the U.S. and Canada increased by 46% for the quarter and 42% for six months, which included a positive currency-translation effect of 14% for the quarter and 13% year to date.
- Favorable conditions across the global farm sector are helping to drive the company''s record financial results even at a time of a slowing U.S. economy.

Deere''s equipment divisions reported operating profit of $1.102 billion compared with $829 million for the respective period last year.

The improvements were largely due to the favorable impact of higher sales and production volumes and improved price realization, partially offset by higher selling, administrative and general expenses and raw-material costs. In addition, a higher effective tax rate had a negative impact on equipment operations'' net income for both periods.

- Trade receivables and inventories at the end of the quarter were $8.200 billion, or 35% of previous 12-month sales, compared with $6.970 billion, or 34% of sales, a year ago.
- Financial services reported net income of $86.4 million versus $86.4 million last year.
- Quarterly results were comparable while the year-to-date improvement was primarily due to growth in the credit portfolio and increased crop insurance income. Partially offsetting these factors were an increase in leverage, increased selling, administrative and general expenses, and lower income from receivable sales.

Agricultural sales increased 34%, with the improvement due to higher shipment volumes, the favorable effects of currency translation, and improved price realization.

Operating profit was $782 million compared with $487 million for the respective period last year. Operating profit was higher primarily due to the favorable impact of higher sales and production volumes and improved price realization, partially offset by higher selling, administrative and general expenses and higher raw-material costs.

Commercial & Consumer division sales were up 8%. LESCO operations, acquired in the third quarter of 2007, accounted for a sales increase of 12%.

Operating profit was $154 million compared with $150 million a year ago. Operating profit was up due to a more favorable product mix, improved price realization and higher sales volumes, largely offset by higher selling, administrative and general expenses related to the LESCO operations.

Construction & Forestry sales declined 7%.

Operating profit was $166 million versus $192 million a year ago. The reduction in operating profit was due to lower shipment volumes, partially offset by improved price realization.

John Deere Capital Corporation’s net income was $77.3 million compared with net income of $76.3 million for the respective period last year.

- The improvement in the quarter was primarily due to growth in the credit portfolio and increased crop insurance income, partially offset by an increase in leverage, and lower income from receivable sales.
- Net receivables and leases financed by JDCC were $19.296 billion at April 30, 2008, compared with $18.245 billion last year. Net receivables and leases administered, which include receivables previously sold, totaled $19.452 billion at April 30, 2008, compared with $18.830 billion one year ago.