Deere 2Q profit falls, sales outlook cutMay 14, 2014 @ 1:32 pm
See all photos
MOLINE, Ill. (AP) -- Deere reported a 9.5 percent 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 percent for the full year. It had projected a 6 percent 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 percent this year.
Overall, the company expects a 4 percent drop in equipment revenue for fiscal 2014. It projected a 3 percent fall three months ago. For the current quarter, it's also expecting a 4 percent 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 percent 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 percent, to close at $91.70 Wednesday.
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Eying the Prize
A dominant win over Arizona has the Seahawks eying the Super Bowl
The Show Will Go On
Dave Ross hopes that seeing "The Interview" won't become a litmus test for patriotism
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.