Deere & Co. released earnings Friday, shrugging off falling sales to come in ahead of estimates. It went on to cut earnings estimates for 2015
The company reported worldwide net sales and revenues for the first quarter of $6.383 billion, down 17% against $7.654 billion last year. Equipment operations accounted for $5.61 billion quarter compared with $6.95 billion a year ago. One percent is attribute to losses from unfavorable foreign currency conversion.
It’s not all unexpected. Government analysts predicted a big drop in agriculture exports in 2015. Deere has been reactive, hundreds of jobs have been cut and production has been pulled back in response to the lower demand in the U.S. and Canada.
Despite the outlook, Allen said, “Even with a continued pullback in the agricultural sector, John Deere expects to remain solidly profitable in 2015, our forecast reflects a level of results much better than we’ve experienced in previous downturns."
Long term for Deere, Allen was just as optimistic. He said the company is in position to expand globally as foreign economies aren't affected by U.S. farming.
