Deere and Company has been preparing investors for lower profits. And this morning, it announced first quarter earnings totaled nearly $387 million. That's $1.12 per share, compared to $1.81 last year. Worldwide sales declined 17 percent.
Ken Golden, Director of Global Public Relations, says lower commodity prices and farm income mean demand for large agriculture equipment is down. But the news is better for the Construction and Forestry Division where sales are up 13 percent in the first quarter.
Golden says Deere is a more efficient and diverse company now than it was in past years, when the farm economy was in decline.
Despite the drop, Deere first quarter profits are still significantly higher than analysts' estimates of $0.83 per share.
2015 sales in the agriculture and turf division are expected to decline 23 percent, while construction and forestry equipment sales are forecast to increase five percent for this year.
Its $1.8 billion profit projection for the year would still rank among the top ten years for Deere and Company.
