John Deere’s financial results for the third quarter of 2019 have been released. Profits were close to $900 million over the period under review, down from the same period last year when net profit was $910 million.
For the first nine months of the fiscal year, John Deere’s net income was $2,532 billion, or $7.87 per share, compared to $1,584 billion ($4.82 per share) in the same period in 2018.
Third quarter 2019 affected by uncertainties in agriculture
Worldwide net sales and revenues decreased 3 percent, to $10.036 billion, for the third quarter of 2019 and increased 5 percent, to $29.362 billion, for nine months. Net sales of the equipment operations were $8.969 billion for the quarter and $26.182 billion for nine months, compared with $9.286 billion and $25.007 billion last year.
«John Deere’s third-quarter results reflected the high degree of uncertainty that continues to overshadow the agricultural sector», said Samuel R. Allen, chairman and CEO. «Concerns about export-market access, near-term demand for commodities such as soybeans, and overall crop conditions, have caused many farmers to postpone major equipment purchases. At the same time, general economic conditions remain positive and are contributing to strong results for Deere’s construction and forestry business».
Machines and equipment, sales are on the rise
Company equipment sales are projected to increase by about 4 percent for fiscal 2019 compared with 2018. Net sales and revenues are projected to increase about 5 percent for fiscal 2019. Net income attributable to Deere & Company is forecast to be about $3.2 billion.
«In spite of present challenges, the long-term outlook for our businesses remains healthy and points to a promising future», Allen said. «We continue to expand our global customer base and are encouraged by response to our lineup of advanced products and services. Furthermore, we are fully committed to the successful execution of our strategic plan focused on achieving sustainable profitable growth. In support of the strategy, we are conducting a thorough assessment of our cost structure and initiating a series of actions to make the organization more structurally efficient and profitable».