COVID-19 has led Deere & Co. to project $1 billion less in projected income for the current fiscal year.
After Deere’s first quarter, the company forecast in February it could bring in between $2.7 billion to $3.1 billion in net income for its fiscal year 2020. As COVID-19 sprawled and became a global pandemic in March, Deere pulled back that forecast.
It disclosed its second quarter earnings May 22, which included a new net income projection of between $1.6 billion and $2 billion.
“We are still operating in a very uncertain environment, given the COVID-19 pandemic,” said Ryan Campbell, Deere’s chief financial officer.
Worldwide net sales and revenue decreased by 18 percent compared to the same quarter last year.
Net sales in the agriculture and turf division fell by 18 percent quarter-to-quarter. Sales in the division are forecast to decline by 10 to 15 percent for FY 2020.
The loss of potentially $1 billion in net income is a microcosm of how the pandemic is impacting the agriculture supply chain and farmers.
CEO John May said that given “current circumstances, we see it as an obligation to continue investing in precision technologies that support customers and keep them running.”
Sources: Quad City Times, Canada News Wire