Deere Blames Weak Farm Conditions For Drastic Drop In Income

Agricultural machinery maker Deere & Co., Moline, Ill., saw worldwide sales drop nearly 20% in its third quarter, resulting in a net income drop of 76%. The company blamed a drop in farm equipment purchases on depressed grain and oilseed prices. This hit the high-horsepower, high-margin tractor and combine sector, where the company is a market leader, according to a statement released Aug. 17. The company reported worldwide net sales of $3.04 billion for the quarter, down from $3.69 billion for the same period last year. Net sales income was $68.9 million, compared with $290.8 million for the same period last year. Nine-month net income was $268.7 million, down from $859.3 million. The company plans to reduce capacity at agricultural equipment plants by one-third in the fourth quarter.