Deere & Company (NYSE:DE) Q1 2018 Earnings Conference Call - Preliminary Transcript
Feb 16, 2018 • 10:00 am ET
Good morning, and welcome to Deere & Company First Quarter Earnings Conference Call. Your lines have been placed on a listen-only until the question-and-answer session of today's conference.
I would now like to turn the call over to Mr. Josh Jepsen, Director of Investor Relations. Thank you. You may begin.
Hello. Also on the call today are Raj Kalathur, our Chief Financial Officer; Ryan Campbell, Vice President and Corporate Controller and Brent Norwood, Manager, Investor Communications.
Today, we'll take a closer look at Deere's first quarter earnings, and then spend some time talking about our markets, and our current outlook for fiscal 2018. After that, we'll respond to your questions. Please note that slides are available to complement the call this morning. They can be accessed at our website at www.johndeere.com/earnings.
First, a reminder. This call is being broadcast live on the Internet, and recorded for future transmission and use by Deere & Company. Any other use, recording or transmission of any portion of this copyrighted broadcast without the express written consent of Deere is strictly prohibited. Participants in the call, including the Q&A session, agree that their likeness and remarks in all media may be stored and used as part of the earnings call. This call includes forward-looking comments concerning the company's plans and projections for the future that are subject to important risks and uncertainties. Additional information concerning factors that could cause actual results to differ materially is contained in the company's most recent Form 8-K and periodic reports filed with the Securities and Exchange Commission.
This call also may include financial measures that are not in conformance with accounting principles generally accepted in the United States of America, or GAAP. Additional information concerning these measures including reconciliations to comparable GAAP measures is included in the release and posted on our website at www.johndeere.com/earnings under Quarterly Earnings & Events. Brent?
With the announcement of our first quarter earnings, John Deere has started out 2018 on a positive note. Net income for the quarter was affected by upfront charges from U.S. tax reform legislation, which we believe will reduce the company's overall tax rate, and be beneficial in the future. Backing out this legislative change, adjusted earnings were $430 million, on sharply higher sales. We have increased our 2018 sales and adjusted net income forecast as a result of our confidence in present market conditions, and in our ability to fulfill customer demand.
Now, let's take a closer look at our first quarter results in detail, beginning on slide 3. Net sales and revenues were up 23% to $6.9 billion. For the quarter, Deere reported a net loss of $535 million or $1.66 per share. During this period, the company incurred charges of $965 million related to recent U.S. tax reform legislation. Excluding this charge, adjusted net income was $430 million or $1.31 per share. The charges included an estimated one-time write-down of net deferred tax assets totaling $715 million. Additionally, Deere incurred an estimated one-time charge of $262 million