Deere Reports Tough Quarter, Remains Optimistic

Deere & Co. reported Friday that a weak global farm economy led to a second-quarter profit loss. Earnings fell from $981 million in the second quarter of 2014 to $690.5 million this year, a 30% decline.

Sales of farming equipment fell 25% from a year ago to $5.77 billion in the second quarter, and Deere expects sales to fall 24% this year.

Solid sales in other categories helped offset losses. Sales of construction and forestry equipment rose 2% to $1.63 billion and are expected to rise another 2% for the year. Deere’s lending unit also fared well, with revenue rising 14% to $653 million.

Profit for 2015 is now expected to be around $1.9 billion.

“John Deere expects to be solidly profitable in 2015,” said Chairman and CEO Samuel Allen through a written statement, “with the year ranking among our stronger ones in sales and earnings despite the pullback in the farm sector.” S