Off-road vehicles and snowmobile segment sales, including PG&A (parts, garments and accessories), were up 6% over the second quarter of 2018 driven by increased average selling prices, particularly in side-by-sides and growth in PG&A.
“Our outlook for fiscal 2019 remains intact despite a slower start to the year than we had anticipated,” stated Todd J. Teske, chairman, president and chief executive officer.
Professional segment net sales for the third quarter were up 3.0% from last year. Residential segment net sales for the third quarter were up 9.5% from last year.
Continued high growth in commercial turf and lawn care, commercial job site, commercial engines and generators was offset by year-over-year softness in residential lawn and garden sales.
Trucking expenses have been climbing in recent months in the U.S. amid a shortage of big-rig drivers, and fuel is becoming more expensive. Also hitting Deere is the recent increase in prices for steel and aluminum.
The third quarter sales increase of 4.5% was driven by increased demand for professional segment products. Residential segment net sales for the third quarter were down 9.3%.
Sales are also up 5% for 9 months, with the quarterly and yearly increases primarily due to higher shipment volumes and price realization, partially offset by higher warranty costs.
Net sales for the second quarter 2017 increased 8.9% to $2.02 billion from $1.85 billion in the second quarter of 2016. The company opened 14 new Tractor Supply stores in the second quarter.
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