Dive Brief:
- Machinery manufacturer John Deere reported Q2 net income of $690.5 million, or $2.03 per share. That's down from the same period last year when the company reported $980.7 million, or $2.65 per share.
- Higher shipment volumes and price realization gave construction and forestry a 2% increase for the quarter and a 7% lift over a six-month period.
- Operating profit for construction and forestry was $189 million for the quarter, or $57 million more than Q2 for 2014. The profit over a six-month period is $335 million, or $109 million than 2014.
Dive Insight:
Deere's performance exceeded expectations due to higher sales in the U.S. and Europe in the construction and forestry sectors, which offset lackluster activity in the agriculture sector, Bloomberg said.
While other divisions are likely to be flat or decrease in the next quarter, a surge in April housing starts indicates the construction sector could see another 2% bump, Deere reports.
Recently, the Equilar-New York Times list of the highest-compensated CEOs revealed that Deere head Samuel R. Allen saw a 5% drop in compensation this year.