Earnings for Deere and Company fell in the second quarter, but less than predicted. Friday it reported net income of 495 million dollars for the quarter ending April 30, or $1.56 per share - 10 cents higher than analysts had predicted.
One year ago, earnings were $2.03.
Spokesman Ken Golden blames the combination of a global farm recession and weakness in demand for construction equipment. We remain strong despite markets being down.
Worldwide sales and revenue dropped 4 per cent to 7.8 billion dollars. At the end of the first quarter, Deere predicted full-year sales would drop 10 per cent, but now is forecasting a 9 per cent decline. We now predict ag equipment will go up a bit but construction sales will fall some more.
Worldwide equipment sales fell 4 per cent in the second quarter - including a 6 per cent drop in North America, but just 1 per cent in Deere's other markets.
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