Deere & Co. posted a 9-percent decline in worldwide net revenues, totaling $9.948 billion for its fiscal second quarter ended April 30. For the first six months of its fiscal year, Deere totaled $17.6 billion, a 4-percent year-over-year drop. Net sales of the equipment operations were $9.246 billion for the quarter, compared to $10.265 billion for the year-ago quarter, a 9.9-percent decline. For the six-month period, equipment operations dropped 5 percent from $17.058 billion to $16.195 billion.
Sales included price realization of 2 percent and an unfavorable currency-translation effect of 1 percent for the quarter and six months. Equipment net sales in the United States and Canada decreased 12 percent for the quarter and 6 percent year-to-date. Outside North America, net sales dropped 6 percent for the quarter and 3 percent for the six-month period.
Deere’s equipment operations reported operating profit of $1.36 billion for the quarter and $2.25 billion for the six-month frame, compared with $1.66 billion and $2.5 billion for the same periods a year ago, the declines primarily caused by lower shipment volumes and foreign-currency exchange issues.
“John Deere is on its way to another year of solid financial and operating performance,” said Samuel Allen, chairman and CEO. “Our second-quarter earnings showed further proof of the adept execution of our operating plans. We kept costs and assets well under control while successfully managing major new-product transitions associated with more stringent emissions standards.”
Allen added that Deere expects to achieve near-record earnings for the full year, although the company said sales are projected to decrease about 4 percent for fiscal 2014 and for the fiscal third quarter. For the fiscal year, the company expects net income of about $3.3 billion.
“We’re confident our extensive investments in new products and markets, coupled with a tight rein on costs and assets, will keep the company on a sound financial footing and help sustain our growth plans,” added Allen.