Construction and Forestry segment

In the second quarter of fiscal 2019, Deere’s (DE) Construction and Forestry segment reported revenue of $2.99 billion, an increase of 10.9% compared to the second quarter of fiscal 2018, when it reported revenue of $2.70 billion. The segment posted its highest second-quarter revenue in the second quarter of fiscal 2019.

DE’s Construction and Forestry Segment Reports Expanded Q2 Margin

The segment’s revenue growth was mainly driven by a two-month contribution from the Wirtgen acquisition. Higher shipping volumes and higher price realizations also helped grow the segment’s revenue. However, the segment was negatively affected by an unfavorable foreign currency exchange.

The segment reported an operating profit of $347 million in the second quarter, an increase of 34.0% from the second quarter of fiscal 2018, when it reported an operating profit of $259 million. Wirtgen Group’s contribution, higher shipments, and higher price realizations helped the segment’s operating profit to grow. On the other hand, higher raw materials costs and an unfavorable product mix had negative effects on the company’s operating profit.

As a result of its higher operating profit, the segment reported an operating margin of 11.6% compared to 9.6% in the previous year, reflecting a margin expansion of 200 basis points year-over-year.


Deere expects the segment’s revenue to rise 11% in fiscal 2019 compared to its earlier guidance of 13%. This downward revision is primarily the result of an unfavorable foreign currency exchange.

Investors looking to hold Deere indirectly might want to consider the First Trust Indxx Global Agriculture ETF (FTAG), which holds 9.1% of its portfolio in Deere. The fund’s other holdings include DowDuPont (DWDP), CNH Industrial (CNHI), and CF Industries Holdings (CF) with weights of 6.1%, 3.2%, and 2.4%, respectively, as of May 17.

Latest articles

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.

Nio Inc. (NIO) has disrupted the automotive space since 2014 but only made waves in the market since its IPO. Investors have suffered numerous setbacks.