x
Breaking News
More () »

John Deere shows sales decline in 2016’s first quarter earnings

John Deere announced that their earnings are down from a year ago, and the company is expecting a 10-percent decline in sales for 2016. In the first quarter, Jo...
John Deere tractor

John Deere announced that their earnings are down from a year ago, and the company is expecting a 10-percent decline in sales for 2016.

In the first quarter, John Deere earned $254.4 million in net income, compared to $386.8 million for the same time frame.  The announcement came on Friday, February 19, from Director of Global Public Relations Ken Golden.

Worldwide net sales and revenues were down to $5.25 billion, compared to $6.383 from 2015. That’s a 13-percent decline.

Chief Executive Officer Samuel R. Allen chalked up the lowered earnings to a “downturn in the global farm economy” and “weakness in construction equipment markets.”

“At the same time, all of Deere’s business remained solidly profitable, benefiting from the sound execution of our business plans and the success of actions to develop a more responsive cost structure,” Allen said.

Click here to see the full earnings report

For both the agriculture & turf and construction & forestry divisions, company leaders say they experienced lower sales partly because of how foreign currency translates into American money.

“Although Deere expects another challenging year in 2016, our forecast represents a level of performance much better than we have experienced in previous downturns,” said Allen. “As a result, the company’s financial condition remains strong and we are well-positioned to continue investing in innovative products, advanced technology and new markets.”

Equipment sales were expected to decrease 10-percent for the rest of 2016’s fiscal year. Company leaders said they’re anticipating about $1.3 billion in net income.

When John Deere released its fourth quarter earnings, it predicted a 7-percent sales decline for 2016.

Before You Leave, Check This Out