Deere & Co. reported net income of $899 million for the fiscal third quarter ended July 28, 2019, or $2.81 per share, compared with net income of $910 million or $2.78 per share for the fiscal third quarter of 2018, a 1.2-percent year-over-year decline. Worldwide net sales and revenues decreased 2.7 percent to $10.036 billion for the third quarter, compared to $10.308 billion a year ago.
For the first nine months of the fiscal year, the story is different. Net sales and revenue was $29.362 billion compared to $27.942 billion a year ago, a 5.1-percent increase. Net income was $2.532 billion of $7.87 per share for the first nine months compared to $1.584 billion or $4.82 per share, a 59.9-percent leap.
“John Deere’s third-quarter results reflected the high degree of uncertainty that continues to overshadow the agricultural sector,” said Samuel Allen, chairman and CEO. “Concerns about export-market access, near-term demand for commodities such as soybeans, and overall crop conditions, have caused many farmers to postpone major equipment purchases. At the same time, general economic conditions remain positive and are contributing to strong results for Deere’s construction and forestry business.”
The company expects equipment sales to increase by about 4 percent for fiscal 2019 compared with 2018. The forecast includes Wirtgen results for the full fiscal year of 2019 compared with 10 months of the prior year. This adds about 1 percent to the company’s net sales forecast for the current year. Also included is a negative foreign currency translation effect of about 2 percent for the year. Net sales and revenues are projected to increase about 5 percent for fiscal 2019, with net income attributable to Deere & Co. of about $3.2 billion.
“In spite of present challenges, the long-term outlook for our businesses remains healthy and points to a promising future,” Allen said. “We continue to expand our global customer base and are encouraged by response to our lineup of advanced products and services. Furthermore, we are fully committed to the successful execution of our strategic plan focused on achieving sustainable profitable growth. In support of the strategy, we are conducting a thorough assessment of our cost structure and initiating a series of actions to make the organization more structurally efficient and profitable.”