The latest quarter’s results reflect the continuing impact of that downturn, said Chief Executive Samuel Allen, who also pointed to weakness in construction equipment markets.
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Deere note that total net sales of worldwide equipment operations fell 15 percent in the quarter while equipment sales in the USA and Canada fell 18 percent.
Incomes in the farming industry have been drying up amid an oversupply of crops that has weakened prices.
Deere & Company announces first-quarter earnings of $254 million and is giving a forecast for the rest of the year.
Deere said that it earned $0.80 per share in the first quarter on revenue of $5.525 billion. “At the same time, all of Deere’s businesses remained solidly profitable, benefiting from the sound execution of our business plans and the success of actions to develop a more responsive cost structure”.
Shares fell almost 3% in premarket trading, and they are down about 11% over the past 12 months.
This beat the 71 cents per share that analysts surveyed by Zacks Investment Research expected.
Sales in Deere’s agriculture and turf segment-which makes up two-thirds of the top line-slid 12%, thanks to lower shipment volumes. Construction and forestry division sales fell 23 percent.
Deere (DE) told investors today that it expects sales to drop 10% this year – a bigger decline than it previously expected.
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The company predicts equipment sales will drop approximately 8 percent in the second quarter.
