Iowa’s largest manufacturing employer is expecting a further decline in equipment sales. The Moline, Illinois-based Deere & Company predicts its annual net income will drop about 40% and revenue from ag and turf equipment — where it gets two thirds of its income — will fall further than it did in fiscal 2014.
The company says lower commodity prices are discouraging farmers from buying machinery. In the fourth quarter ended October 31st, the world’s largest farm equipment supplier says net income fell to $649 million from $806 million a year earlier. Revenue fell 5 percent to $9 billion. CEO Samuel Allen says the slowdown has been most pronounced in the sale of large farm machinery. Deere, which also manufactures construction equipment, is cutting jobs and production to match demand.
(Reporting by Phil Roberts, Davenport)