The pandemic has taken a bite out of sales and profits for John Deere. Friday it reported sales in the second quarter dropped 18 per cent compared to the same quarter last year, and net income fell 41 per cent.
But the company beat analysts' forecasts in both categories.
Sales in the quarter for the Agriculture and Turf Division dropped 18 per cent, and fell 25 per cent for Construction and Forestry.
And its forecasts for this year have changed significantly:
- Instead of falling 5 to 10 per cent, Deere now predicts worldwide farm equipment sales will fall 10 to 15 per cent,
- The first prediction for construction and forestry was a 10 to 15 per cent drop this year, but now the company believes sales will fall 30 to 40 per cent,
- And the forecast for net income has fallen from as much as $3 billion this year, to $2 billion or less.
To listen to the Q2 2020 Deere & Company Earnings Call, click HERE. Registration is usually required.