said Wednesday that net sales of worldwide equipment operations increased 1% for the first quarter. Included were price changes of 6%, offset by an unfavorable currency-translation effect of 6%.
The Moline, Ill., farm-equipment maker said in a press release that equipment net sales in the U.S. and Canada rose 1% for the quarter. Net sales outside the U.S. and Canada were unchanged for the quarter, including an unfavorable currency-translation effect of 14%.
Deere's equipment operations reported an operating profit of $307 million for the quarter, down from $457 million last year. The decline was due largely to increased raw material costs and unfavorable effects of foreign-currency exchange, partially offset by improved pricing.
"The outlook for the coming year remains unusually uncertain, especially with respect to foreign exchange, and the outlook's impact on the company's sales and earnings difficult to assess," Deere said.
Company equipment sales are projected to be down about 8% for the full year and around 9% for the second quarter. Included is a negative currency-translation impact of around 6% for both the year and second quarter.
Deere's net income should be around $1.5 billion for 2009, with more risk on the downside at this time, the company said. The company said it was stopping its practice of providing a quarterly net income forecast because of highly uncertain conditions in the global economy, including volatility in foreign exchange rates.
This article was written by a staff member of TheStreet.com.