1:30PM New York – Deere & Company reported first quarter sales increased 18% and net income 22.4%.

Deere & Company, an agricultural equipment company today reported second quarter net revenues increased 18% to $8.097 billion. Net income increased 22.4% to $763.5 million or $1.74 per share compared with $623.6 million or $1.36 per share for the same quarter of 2007.

Net sales of the equipment operations were $7.469 billion for the quarter and $11.99 billion for six months, compared with $6.266 billion and $10.08 billion for the same period of last year. Worldwide net revenues increased 18% to $13.3 billion for the first six months.



Net sales outside the U.S. and Canada were increased by 46% percent for the quarter and 42% for six months.

Equipment divisions reported operating income of $1.102 billion for the quarter and $1.559 billion for six months, compared with $829 million and $1.099 billion for the respective periods last year.

Trade receivables and inventories at the end of the quarter were $8.2 billion or 35% of previous 12-month sales, compared with $6.97 billion or 34% of sales a year ago.

Financial services reported net income of $86.4 million for the quarter and $184.1 million for six months versus $86.4 million and $174.6 million last year.

Agricultural leads in segment sales

Agricultural sales increased 34% for the quarter and the six months. Operating profit was $782 million for the quarter and $1.114 billion for six months compared with $487 million and $624 million for the respective periods last year.

Commercial & consumer division sales were up 8% for the quarter and 11% for the year to date. Operating profit was $154 million for the quarter and $162 million year to date compared with $150 million and $188 million a year ago.

Construction & forestry sales declined 7% for both the quarter and year to date. Operating profit was $166 million for the quarter and $283 million for six months, versus $192 million and $287 million a year ago.

Annual sales are expected to rise 20%

Company equipment sales projected to increase by about 20% for both the full year and the third quarter of 2008. Net income forecast to be about $2.2 billion for full-year 2008 and in a range of $550 million to $575 million for the third quarter.

Deere & Company stock (DE: chart) fell $7.50 to $82.68. In the last one year stock has traded between $56 and $94.