Sales are up, profits slip for Deere & Company
Manufacturer facing headwinds from commodities, hesitant farmers.
Deere & Company reported worldwide net sales and revenues increased 6% in the second quarter to $11.3 billion while sales for the first six months of 2019 rose 10% to $19.3 billion.
The Moline, Ill.-based equipment manufacturer also reported a net income of $1.135 billion for the second quarter, down 6% from a net income of $1.208 billion. For the first six months of the year, Deere’s net income increased to $1.6 billion from a net income of $673.2 million in the first half of 2018.
Last year’s earnings were impacted by charges from U.S. tax reform legislation. Without the charges, net income attributable to Deere & Company for the second quarter and first six months of 2018 would have been $1.034 billion.
Net sales for equipment operations were $10.3 billion for the quarter and $17.2 billion for the six-month period, compared with $9.7 billion and $15.7 billion for the same periods last year.
The bottom line: Sales in the second quarter 2019 rise 6% to $11.3 billion while profits slip 6% to $1.135 billion.
What the CEO said: “John Deere produced solid results for the quarter despite uncertain conditions in the agricultural sector,” said Samuel Allen, chairman and CEO. “Ongoing concerns about export-market access, near-term demand for commodities such as soybeans, and a delayed planting season in much of North America are causing farmers to become much more cautious about making major purchases. At the same time, overall economic conditions remain positive, a fact that along with a growing customer base has contributed to strong results from our construction and forestry business.”
Company info: Deere & Company’s full second quarter 2019 report is available here.
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