John Deere sees result fall in third quarter

Machine maker John Deere's global sales and profits fell 11% in the third quarter, according to the latest quarterly figures. The manufacturer also reports that it expects sales of agricultural machinery in Europe to fall by 5% to 10%. 

Deere & Company has for the third quarter a net profit of $811 million (approximately €687 million), with earnings of $2,57 per share (or $2,17 per share). Last year, the results for this period were still at $899 million and $2,81 per share. If we look at the first 9 months of the year, we see a net profit of $1,99 billion. That is significantly less than last year's $2,53 billion.

Declining turnover and profit
The machine maker's worldwide sales and profits fell 11% in the third quarter to $8,92 billion. The decline over the first 7,5 months of the year is comparable to that in the third quarter: -9% to $12 billion. Machinery sales are also nearly $25,80 billion lower than last year: $1 billion in 7,85 versus $2020 billion in 8,96. Still, CEO John C. May is not dissatisfied with these results. "We have delivered a strong performance in light of the global corona crisis."

De manufacturer agricultural machinery expects net income for the full year 2020 to be close to $2,25 billion. Although the company does indicate that there is still a lot of uncertainty surrounding the corona virus and the (negative) consequences that the pandemic can have on the operating result.

Lower sales figures expected
In addition, John Deere expects sales of its machines to decline by approximately 10% this fiscal year. Account is taken of a negative effect of the exchange rate of 2%. In the United States and Canada, it forecasts a 5% to 10% decline in sales, compared to last year. For Europe, sales are also expected to fall by 5% to 10%. For the South America region, the machine manufacturer expects a decrease of 10% to 15%.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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