John Deere, Iowa’s largest manufacturing employer, released its third-quarter financial report today which shows both ups and downs for the three-month period that ended July 31st.
Josh Jepsen, Deere’s manager of investor communications, says all of the Quad Cities-based company’s varied segments are in the black ink.
“John Deere today reported solid financial results for the third quarter and did so in spite of the continuing impact of the global farm recession and difficult conditions in the construction equipment sector,” Jepsen says. “All of Deere’s businesses remained profitable for the quarter and earnings per share was slightly higher than last year.”
Jepsen says there is weakness in the global markets for farm and construction equipment which brought the company a drop in sales as well as a drop in net income.
“Operating profit for our ag and turf division and for the equipment businesses overall was above last year’s levels even though sales were down nearly $1 billion,” Jepsen says. “Our results were helped by the sound execution of our operating plans, the impact of a broad product portfolio, and our success keeping a tight rein on costs and assets.”
This marked the 11th consecutive quarter where Deere’s earnings were down from the previous year. “Net sales and revenues were down 11 percent to about $6.7 billion,” Jepsen says. “Net income attributable to Deere & Company was $489 million. Worldwide equipment operations net sales were down 14 percent to just under $5.9 billion.”
Looking ahead, Deere’s equipment sales are projected to fall about ten-percent during fiscal year 2016 and be down about 8 percent for the fourth quarter compared with a year ago.
