MOLINE, Ill. (KWQC) Deere & Company reported Friday a net income of $517 million, or $1.63, for the first quarter ending Feb. 2.
That’s compared to a net income of $498 million, or $1.54 per share, for the quarter ending on Jan. 27, 2019.
Further, worldwide net sales and revenues decreased 4 percent in the first quarter of 2020 to more than $7.6 billion. Net sales of the equipment operations were more than $6.5 billion for the quarter, compared with more than $6.9 billion in 2019.
“John Deere’s first-quarter performance reflected early signs of stabilization in the U.S. farm sector,” John C. May, chief executive officer, said in a media release. “Farmer confidence, though still subdued, has improved due in part to hopes for a relaxation of trade tensions and higher agricultural exports.
“At the same time, activity in the construction sector has slowed leading to lower sales and profit for our Construction & Forestry division. Also impacting results in Deere’s construction equipment business were our actions to reduce factory production and lower inventories in response to current market conditions. Additionally, the quarter included costs of a voluntary employee-separation program, which is among the steps Deere is taking to improve flexibility and efficiency.”
Net income attributable to Deere & Company for fiscal year 2020 is forecasted at between $2.7 billion and $3.1 billion.
“Looking ahead, we are particularly encouraged by the broad use of precision technologies and believe the company is well-positioned to strengthen its leadership in this vital area,” May said. “In addition, we are proceeding with a series of measures to create a more focused organizational structure that can operate with greater speed and agility. These steps are leading to improved efficiencies and helping the company focus its resources and investments on areas that have the most impact on performance.”