Deere Announces First Quarter Results

Deere’s equipment operations reported operating profit of $414 million for the first quarter, ending January 31, compared with $891 million last year, according to Nasdaq.com. The company attributed the decline primarily to lower shipment volumes and the impact of a less favorable product mix, partially offset by lower selling, administrative and general expenses and price realization. Net income of the company’s equipment operations was $241 million for the quarter, compared with $543 million in 2014.

The company’s worldwide sales of agriculture and turf equipment are forecast to decrease by about 23% for fiscal-year 2015, including a negative currency-translation effect of about 4%.

The company noted that its quarterly performance reflected sluggish conditions in the global farm sector, which reduced demand for agricultural machinery, mainly larger models, and resulted in lower sales and income.

Deere’s report came the same week that Berkshire Hathaway disclosed through SEC filings that Warren Buffett’s company quietly purchased 17.1 million shares in the farming tractor and equipment company over a short period in 3Q 2014.