Deere Equipment Sales Rise, but Income Falls
Sales rose but net income fell for John Deere during its second quarter.
Today, the company reported sales rose 6% to 11.3 billion dollars during February, March, and April.
Profits totaled $1.1 billion, compared to $1.2 billion at this time a year ago.
Director of Global Public Relations for Deere, Ken Golden, says farmers are waiting to buy new equipment in the short term.
But he says the company expects sales to increase over the long run. Construction and forestry equipment sales are forecast to increase 11% over the next year, and ag should be up 2%.
In the just-ended second quarter, sales of Deere construction and forestry equipment rose 11% compared to the same period a year ago, while farm and turf equipment rose 3%.
Golden says the uncertainty is caused by factors such as rain and flooding that have delayed planting in the US Midwest, low commodity prices, and the trade war with China.
And because of that, Deere & Company has lowered its full-year earnings projection to $3.3 billion, down from $3.6 billion in February.