Friday, March 6th8.4°C
25407
25263

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 TSX14952.50-150.61
S&P CDNX688.79-8.13
DJIA17856.78-278.94
Nasdaq4927.371-55.439
S&P 5002071.26-29.78
CDN Dollar0.7929-0.0082
Gold1163.70-32.2001
Oil51.45-1.10
Lumber282.70-4.30
Natural Gas2.842+0.001

 
Okanagan Companies
Pacific Safety0.125-0.005
Knighthawk0.010.00
QHR Technologies Inc1.55-0.10
Cantex0.035-0.005
Anavex Life Sciences0.18-0.004
Metalex Ventures0.0450.00
Russel Metals24.21-0.06
Copper Mountain Mining1.19-0.05
Colorado Resources0.14+0.01
ReliaBrand Inc0.0065-0.0015
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.22-0.005

 





FEATURED Property
13307034835 Paradise Valley Drive - Peachland
2 bedrooms 1 baths
$128,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


How to price: Step Four

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The purpose of the book was to make available to the owners of small companies, pricing techniques used by sophist...


Refinance your mortgage?

Canadian Mortgage rates are low and could be dropping down in time for the spring market following a drop in the Bank of Canada Rate on January 21 by 1/4% which will save new buyers and those with mo...


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...

_








Member of BC Press Council


25107