Deere & Co. 3rd Quarter Earnings Fall
August 13, 2014
Lower demand for farm equipment is affecting Deere and Company's bottom line. But it still predicts full-year profits will be the second highest ever. This morning, Deere reported third quarter earnings totalled $851 million or $2.33 per share, compared to $2.56 last year.
Ken Golden, Director of Global Public Relations, says worldwide sales from May through July dropped 5% to $9.5 billion. Sales fell 11% in Deere's Agriculture and Turf Division. He says that means production schedules will change. "Production would be cut back in the 4th quarter to meet current market demand. That's not anything new for us. We have said we're committed to always cutting production to market levels."
But Golden says other divisions are benefitting from growth in the US economy. "We still expect sales of construction and forestry equipment to increase by about 10% for the full year. You know this is showing where the economy is headed. The economy is recovering, and there's higher housing starts in the US. And we're also seeing sales increases outside the US and Canada for that division."
Deere has revised its full-year earnings projection to $3.1 billion, compared to its spring prediction of $3.3 billion.