Wednesday, October 22nd12.2°C
23711
23129

Deere 2Q profit falls on lower demand for farming equipment; projects sales drop

MOLINE, Ill. - Deere reported a 9.5 per cent decline in second-quarter net income Wednesday on lower demand for farming equipment and cut its sales forecast for the year.

The company beat Wall Street's quarterly expectations on both profit and revenue, but the sales outlook weighed on the company's stock price.

With farmer income projected to decline, Deere said sales of its agriculture and turf equipment could fall 7 per cent for the full year. It had projected a 6 per cent decrease in February.

The U.S. economic rebound and housing recovery is helping to offset some of the decline in agriculture. The company expects its construction and forestry equipment sales to rise 10 per cent this year.

Overall, the company expects a 4 per cent drop in equipment revenue for fiscal 2014. It projected a 3 per cent fall three months ago. For the current quarter, it's also expecting a 4 per cent decline in equipment revenue.

Net income in the most recent quarter fell to $980.7 million, or $2.65 per share, compared with $1.08 billion, or $2.76 per share, in the same quarter a year ago.

That was much better than the per-share forecast of $2.47 on Wall Street, according to a poll of analysts by FactSet.

Revenue fell 8.9 per cent to $9.95 billion, from $10.91 billion, but that also edged out analyst expectations for $9.63 billion.

For the full year, Deere maintained its forecast for net income of $3.3 billion.

Shares of Deere & Co., based in Moline, Illinois, fell $1.91, or 2 per cent, to close at $91.70 Wednesday.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14312.07-235.64
S&P CDNX808.00-14.28
DJIA16461.32-153.49
Nasdaq4382.847-36.632
S&P 5001927.11-14.17
CDN Dollar0.8898+0.0003
Gold1242.10-3.40
Oil79.93-2.03
Lumber329.60+0.90
Natural Gas3.662-0.049

 
Okanagan Companies
Pacific Safety0.12+0.02
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.055-0.025
Anavex Life Sciences0.198+0.006
Metalex Ventures0.05+0.005
Russel Metals32.53-0.56
Copper Mountain Mining2.10-0.07
Colorado Resources0.145-0.005
ReliaBrand Inc0.013+0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.405-0.055

 



23434

FEATURED Property
10349801087 Oswell Drive
$199,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_








Member of BC Press Council


22632