In a statement, Deere & Co., the manufacturers of John Deere tractors and other agricultural machines, predicted its net income for the full year would be between $1.6 billion and $2 billion while noting that the novel coronavirus outbreak caused significant uncertainty.
Worldwide company sales fell 18% to $9.253 billion for the second quarter of 2020, and net sales fell 13% to $16.884 billion for the last six months. Sales from Deere’s equipment operations for the quarter were $8.224 billion and $14.745 for the last six months. In financial year 2019, Deere made $10.273 billion in the second quarter and $17.214 billion during the first six months. The company predicted that sales of its farm and turf machines would fall between 10% to 15% over the full course of 2020.
Despite the sobering comparisons to last year’s figures, some are calling Deere’s numbers reassuring, as the losses in sales were less than analysts were expecting. According to an analyst cited by Reuters, earlier predictions saw farm equipment sales falling 14%, which is on the higher end of Deere’s predictions. A recent COVID-19 relief act providing $19 billion to help U.S. farmers cope with the impacts of the pandemic may have buoyed sales, which Reuters reports typically tick up in the months following January.
In a statement, CEO John May thanked his company’s employees, dealers, and suppliers, who he said “worked tirelessly” to keep Deere’s operations safe and running. As a result of the company’s strong stakeholder relationships, he said, “we’re confident the company will successfully manage the pandemic’s effects and strengthen its position serving customers in the future.”
The company reported a net income of $665.8 million in the second quarter of 2020, or $2.11 per share. Over the past two quarters, Deere recorded an income of $1.182 billion, or $3.73 per share.
Both of those figures are worse than for the same periods last year. In the second quarter of 2019, Deere made $1.135 billion in net income, or $3.52 a share, and in the first six months of 2019 Deere made $1.633 billion or $5.07 per share.