Profits tumble hard at Deere & Co.
Equipment operations sales fall 20% in Q2.
The COVID-19 pandemic took a direct hit on sales and profits for equipment manufacturer Deere & Company.
Deere reported second quarter 2020 sales and revenues decreased 18% to $9.25 billion from $11.34 billion in the second quarter 2019.=
Sales and revenues for the first six months of 2020 fell 13% to $16.88 billion from $19.34 billion for the first half of 2020.
Net sales from equipment operations fell 20% to $8.22 billion during the second quarter compared with $10.273 billion for the same period last year.
Profits declined dramatically for the Moline, Ill.-based company as Deere posted a net income of $665.8 million for the period compared with a net income of $1.135 billion in the second quarter 2019. Deere’s net income for the first six months of the year dropped to $1.18 billion from a net income of $1.63 billion in the first half of 2019.
The Bottom Line: COVID-19 has a dramatic impact on Deere sales and earnings as profits fall 41% in the second quarter.
What the CEO said: “John Deere’s foremost priority in confronting the coronavirus crisis has been to safeguard the health and well-being of employees while fulfilling its obligation as an essential business serving customers throughout the world,” said John May, chairman and CEO of Deere & Company.
“We’ve had good success in these areas thanks to the proactive measures we have taken to keep employees safe and our production facilities and parts distribution centers operational. At the same time, the company has reached out to our local communities to help those in need as a result of the pandemic. Deere and its employees have provided generous support to area food banks and other organizations offering assistance during this difficult time.”
Company info: The full second quarter 2020 financial report from Deere & Company can be found here.
No comments found