Moline-based Deere and Company says its profits have fallen by double digits as it enters a tough 2015.
Worldwide sales and revenues for its first quarter for November, December, and January decreased 17%, to $6.38 billion compared to $7.65 billion last year.
Net sales of the equipment operations were $5.6 billion for the quarter compared with $6.9 billion a year ago.
Despite the drop in sales and revenues, the company’s announcement still beats Wall Street expectations.
Deere says its first quarter profits for November, December, and January totaled $386.8 million, or $1.12 per share. It compares to $681.1 million, or $1.81 per share, for the same period last year.
“Deere’s first-quarter performance reflected sluggish conditions in the global farm
sector, which reduced demand for agricultural machinery, particularly larger models, and led to lower sales and income,” said Samuel R. Allen, chairman and chief executive officer of Deere and Company in a media release.
“At the same time, our construction/forestry and financial services divisions had higher profits,” said Allen.
Other points of interest:
- Net sales of the worldwide equipment operations declined 19% for the quarter
- Equipment net sales in the United States and Canada decreased 14%
- Outside the U.S. and Canada, net sales were down 28%
- Company equipment sales are projected to decrease about 17% for fiscal 2015
and be down about 19% for the second quarter compared with year-ago periods
*Even with a continued pullback in the agricultural sector, John Deere expects to
remain solidly profitable in 2015,” Allen said.
“Our forecast reflects a level of results much better than we’ve experienced in previous downturns.”