KDSN RADIO News
Deere sales, revenue down 12% in past three months
Photo of John Deere 9RX tractor by Mark Dorenkamp, Brownfield Network
Due to “challenging market conditions,” Deere and Company is reducing is prediction of profits for its current operating year.
Over the past three months, net sales and revenue for Deere products worldwide were down 12%. Deere’s chairman and CEO points to a decline “across the global agricultural sector.” The USDA predicts farm income will fall over 25% this year as corn and soybean prices are falling and production costs are increasing.
Deere predicts sales of large farm equipment, like tractors and combines, will be down 20-25% for the year. Still, the world’s largest farm equipment marker projects net income for its current fiscal year will be $7 billion. That’s about half a billion below its previous estimate.
Deere’s CEO said the company is “managing production and inventory levels to adapt to demand.” Over 300 workers at John Deere’s Waterloo Works were laid off indefinitely at the end of April. Last week, Deere announced 34 workers at one of its plants in Moline, Illinois would be laid off at the end of May.
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