Sales and profits fell for Deere and Company during its second quarter, but not as much as expected.
Today, the company reported sales in February, March, and April totaled 8.1 billion dollars, down 18% from the same quarter a year ago. And net income was 2.03 per share, a drop of 23%.
Both results however, beat analysts' expectations. For example, the consensus prediction for profits was just 1.57 per share. (total earnings fell 30% from 981 to 690 million).
Chairman and CEO Sam Allen considers the 2nd quarter results "noteworthy" in light of weak conditions for agriculture worldwide. In the US, farm income is expected to drop 32% this year.
Sales of Deere farm equipment in the quarter dropped 25% from a year ago, and the company now predicts an overall drop for the year of 24%. Construction and forestry equipment sales rose 2%, and Deere predicts the same increase for this year.