Deere Reports 2Q Results

  • Agriculture & Turf sales down 18% from same quarter last year
  • Forecast to decline 10 to 15 percent for fiscal year 2020

MOLINE, Ill., May 22, 2020 /CNW/ — Deere & Company (NYSE: DE) reported net income of $665.8 million for the second quarter ended May 3, 2020, compared with net income of $1.135 billion, for the quarter ended April 28, 2019. Worldwide net sales and revenues decreased 18 percent, to $9.253 billion, for the second quarter of 2020. Net sales of the equipment operations were $8.224 billion for the quarter compared with $10.273 billion year.

Company Outlook & Summary

Net income attributable to Deere & Company is forecast to be in a range of $1.6 billion to $2 billion for the full year. However, many uncertainties remain regarding the effects of the COVID-19 global pandemic that could negatively affect the company’s results and financial position in the future.

Agriculture & Turf sales decreased for the quarter due to lower shipment volumes and the unfavorable effects of currency translation, partially offset by price realization. Operating profit declined for the second quarter primarily due to lower shipment volumes / sales mix, along with the unfavorable effects of foreign-currency exchange. These factors were partially offset by price realization, lower selling, administrative, and general expenses, reduced production costs, and lower research and development expenses.

Agriculture & Turf. Deere worldwide sales of agriculture and turf equipment are forecast to decline 10 to 15 percent for fiscal year 2020, including a negative currency-translation effect of about 2 percent.  Industry sales of agricultural equipment are expected to be down about 10 percent from last year for the U.S. and Canada, while sales in Europe are expected to be down 5 to 10 percent. South American industry sales of tractors and combines are projected to be down 10 to 15 percent. Asian sales are forecast to be down moderately due in large part to the pandemic-related shutdown in India. Industry sales of turf and utility equipment in the U.S. and Canada are expected to be down about 10 percent for 2020.