Deeres 4th Quarter Sales Dip, Predict Slow Start to 2015
Deere’s fourth-quarter results were stronger than Wall Street expected, but the company says its farm equipment sales and profits will continue to fall as the sector remains weak, according to qconline.com.
Deere anticipates that its annual net income will drop about 40%, and revenue from agricultural and turf equipment will fall further than it did in fiscal 2014—down 20% in 2015 versus a 13% decline in 2014—although those products generated almost three-quarters of Deere’s total revenue in the last fiscal year.
Falling commodity prices and lower farm income have hurt the company, which in August lowered its outlook and said it would cut production in response to weak sales.
In the fourth quarter 2014, Deere says it earned $649.2 million, down from $806.8 million a year ago. Its total revenue was $8.97 billion, down from $9.45 billion a year ago. S