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John Deere sees continual drop in sales

John Deere is seeing a drop in sales worldwide.
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John Deere is seeing a drop in sales worldwide.

The second quarter earnings report was released in May 2016, and showed that weak construction-equipment markets have led to lower sales and earnings for the year.

In their earnings report, Deere & Company reported earning $749.8 million from the first half of the year – compared to $1.077 billion from the same time last year.  For the quarter alone, the company earned $495.4 million.  Deere reported earning $254.4 million during the first quarter of 2016. 

“John Deere’s second-quarter performance reflected the continuing impact of the downturn in the global farm economy and further weakness in the construction equipment sector,” said Samuel R. Allen, chairman and chief executive officer.

For fiscal year 2016, Deere & Company is expecting a 9% fall in equipment sales.  The company is anticipating net income to round out around $1.2 billion.

“Although our forecast calls for lower results this year in light of ongoing market pressures, Deere is continuing to perform at a much higher level than in previous downturns,” Allen said.

On April 15, Deere had planned to lay off about 125 employees. About 50 of those employees worked at the agriculture and turf division factory in Ankeny and roughly 75 were from the construction and forestry division factory in Dubuque.

The layoffs were in an attempt to “balance the size of its manufacturing workforce with market demand for products at individual factories.”

Click here to see the entire second quarter earnings report.

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