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Deere and Co, the owners of the John Deere tractor brand, has reviewed its earnings forecast for the financial year to October, saying it will finish at about US$1.9 billion despite sales having fallen by 19% in the year so far, not 17% as previously forecast.
Earnings Feb-April dropped 30% to US$690.6 million, on revenues down 20% to US$ 7.40b, much less than forecast.
Samuel Allen, chairman and chief executive, said “JD expects to be solidly profitable in 2015 despite a pullback in the farm machinery sector. All in all we remain confident in the company’s direction and our ability to meet our customers’ needs.”
First quarter results were noteworthy in light of the weakness blighting the global agricultural sector.
Deere agricultural sales fell 25% to US$ 5.77b; the construction division gained 2% to finish at US$ 1.63 billion.
Lower commodity prices and falling farm incomes put pressure on demand for agricultural machinery, particularly larger items such as combine harvesters and large tractors traditionally bought by Canadian and North American grain farmers.
Deere predicts the market in Brazil will fall by 15-20% due to economic uncertainty and the high-interest government loans normally used to fund agriculture.
The Canadian and US markets look likely to fall by only 25% as the the livestock sector show signs of rallying on the back of low grain prices.
Grape and orchard growers will soon be able to take a closer look at John Deere’s new 5EN specialty narrow tractors, which offer more power and comfort in narrow vineyards or tree rows.
Recently released in Australia and New Zealand by John Deere, a unique new software platform offers near real time profitability monitoring across crops and individual paddocks.
John Deere has released details of its next generation of fixed and variable chamber round balers, offering advanced automation for increased productivity, along with user-friendly features, including new endless belts that ensure reliable net feeding, particularly in sticky conditions, and an optional integral bale weighing system.
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Whangarei field service technician, Bryce Dickson has cemented his place in John Deere’s history, becoming the first ever person to win an award for the third time at the annual Australian and New Zealand Technician of the Year Awards, announced at a gala dinner in Brisbane last night.
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