Net sales of the construction, forestry and farming equipment operations were $8.328bn for the quarter and $13.841bn for six months, compared with $6.548bn and $10.785bn for the corresponding periods last year.
Deere's worldwide sales of construction and forestry equipment are forecast to rise by about 35% for 2011. The increase reflects somewhat-improved market conditions in relation to the prior year's low level and increased activity outside the US and Canada, said the company. Construction equipment sales to independent rental companies are seeing growth.
"With our record second-quarter performance, John Deere is well on its way to a year of exceptional results," said chairman and chief executive officer Samuel R. Allen. Construction equipment shipments are moving higher in spite of lingering weakness in the residential and commercial construction sectors. Sales of large farm machinery, particularly in the United States, Canada and Brazil, are continuing to support the company's performance.
"Markets for construction equipment in the US and for farm machinery in Europe are in the early stages of recovery," Allen said. "We're optimistic about the longer-term opportunity for further improvement in these and other key areas."
Construction and forestry sales climbed 46% for the quarter and 61% for six months, mainly due to higher shipment volumes and improved price realization. The division had operating profit of $105m for the quarter and $194m for six months, compared with last year's operating profit of $36m in the quarter and an operating loss of $1m for the six-month period.
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