Deere and Company says it didn’t make as much money over the past three months as it did during the second quarter of 2013.
Deere says it earned $980.7 million in the quarter that ended April 30, that’s a 9% drop from the $1.084 billion earned this time last year. Net sales of worldwide equipment operations declined 10% for the quarter and 5% for six months compared with the same periods a year ago.
The company beat Wall Street’s quarterly expectations on both profit and revenue, but the sales outlook weighed on shares before the opening bell.
With farmer income projected to decline, Deere said sales of its agriculture and turf equipment could fall 7% for the full year. It had projected a 6% decrease in February.
But Deere still sees a silver lining.
“John Deere is on its way to another year of solid financial and operating performance,” said Samuel Allen, Deere chairman and chief executive officer.
“We kept costs and assets well under control while successfully managing major new-product transitions.”
Deere continues to project income of $3.3 billion for the entire year.
“John Deere expects to achieve near-record earnings for the full year and the company is well-positioned to deliver solid financial results throughout the business cycle,” Allen said in a corporate news release.
“We’re confident our extensive investments in new products and markets, coupled with a tight rein on costs and assets, will keep the company on a sound financial footing and help sustain our growth plans.”