The company continues to expect full-year net income of $3.3 billion on a sales decline of 3%, as well as a drop of 6% in the second quarter. In fiscal year 2013, the company’s revenues totaled $3.54 billion.
The company’s CEO said:
Even in the face of moderating demand for agricultural equipment, Deere is well-positioned to deliver solid performance. We believe that our extensive investments in new products and new markets will provide strong support to our results and keep our strategic plans moving ahead.
Sales in the company’s agriculture and turf division rose 2% year-over-year in the quarter, while construction and forestry equipment sales were up 4%. Deere expects agriculture and turf sales to fall 6% in the 2014 fiscal year, which includes a decline of 5% in agricultural machinery sales. Construction and forestry equipment sales are expected to rise 10% for the year.
Deere actually performed better in its first quarter than it had estimated. The company had been looking for a sales decline of 2% and instead posted a gain of 3%. But Deere’s expected overall softness for the year remains.
Shares of Deere traded up about 2.3% in the premarket Wednesday, at $89.51. The 52-week range is $79.50 to $94.01. Thomson Reuters had a consensus analyst price target of around $87.00 before this report.
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