John Deere Reports Third Quarter Earnings

August 19, 2009 04:23 AM
 

In its third-quarter earning conference call, John Deere said it is in the home stretch of a challenging year—a year that has witnessed the largest single-year decline in sales in the past 50 years.

 

Depsite the current economic environment, the company had a profitable quarter

with worldwide net income of $420.0 million in the quarter. In the first nine months of the year, net income was $1.096 billion, compared with $1.708 billion in 2008.

 

Worldwide net sales and revenues declined 24 percent, to $5.885 billion, for the third quarter and were down 15 percent to $17.778 billion for nine months compared with a year ago. Net sales of the equipment operations were $5.283 billion for the quarter and $16.030 billion for nine months, compared with $7.070 billion and $19.070 billion last year.
 

  • Net sales of the worldwide equipment operations decreased 25% for the quarter and 16% for nine months.
  • Equipment net sales in the United States and Canada declined 16% for the quarter and 9% year to date.
  • Net sales outside the United States and Canada were down 37% for the quarter and 26% for nine months.

 

The Agriculture and Turf division has not exhibited near the weakness shown from the Construction and Forestry division. Although utility tractor sales have declined about 30% in July 2009 for John Deere, row crop tractor sales increased double-digit percentage, 4WD tractors increased about 30% and combine sales increased more than 25%.

 

Company equipment sales are projected to be down about 21% for the full year and down about 34% for the fourth quarter. Full-year sales of the agriculture and turf division are forecast to decrease by about 15%.

 

To align inventories with retail demand, John Deere will continue to implement significant production cutbacks.

 

For more information: John Deere

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