Thanks to falling farm income, profits for Deere and Company are expected to continue falling.
The farm and construction equipment maker based in the Quad Cities will announce its second quarter results tomorrow.
The USDA recently predicted farm income this year will drop 32% from last year. And the company has already felt the effects. Sales declined 19% in the first quarter and earnings per share dropped 38%.
As reported by the Financial Times, Bloomberg says the consensus of analysts is that Deere sales fell 18% in February, March, and April, compared to the previous year. And net income will be down 46% ( from 2.65 to 1.56 per share).
On the bright side, the construction and forestry division is doing well this year, sales grew 13% in the first quarter.