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