Deere posts drop in Q3 profit but lifts FY guidance
Deere & Co. lifted its full-year forecast on Friday but posted a drop in third-quarter profit amid weakness in global markets for farm and construction equipment.
Deere & Co.
$394.06
10:59 08/11/24
For the quarter to the end of July, net income came in at $488.8m, down from $511.6m in the same period a year ago. Per share, earnings were up at $1.55 from $1.53 due to a lower number of shares outstanding.
Meanwhile, net sales and revenues were 11% lower at $6.72bn for the third quarter, and down 9% for the nine months to $20.12bn.
Net sales of the worldwide equipment operations dropped 14% for the quarter and 11% for the first nine months compared with the same periods a year ago.
Chairman and chief executive Samuel R. Allen said: “John Deere’s performance in the third quarter reflected the continuing impact of the global farm recession as well as difficult conditions in construction equipment markets.
“All of Deere’s businesses remained profitable with the Agriculture & Turf division reporting higher operating profit than last year. As in past quarters, our results benefited from the sound execution of our operating plans, the impact of a broad product portfolio, and our success keeping a tight rein on costs and assets.”
On the bright side, however, the company lifted its full-year 2016 earnings forecast. It now expects to earn $1.35bn, up from a previous estimate of $1.2bn.