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Deere and Co, the owners of the John Deere tractor brand, has reviewed its earnings forecast for the financial year to October, saying it will finish at about US$1.9 billion despite sales having fallen by 19% in the year so far, not 17% as previously forecast.
Earnings Feb-April dropped 30% to US$690.6 million, on revenues down 20% to US$ 7.40b, much less than forecast.
Samuel Allen, chairman and chief executive, said “JD expects to be solidly profitable in 2015 despite a pullback in the farm machinery sector. All in all we remain confident in the company’s direction and our ability to meet our customers’ needs.”
First quarter results were noteworthy in light of the weakness blighting the global agricultural sector.
Deere agricultural sales fell 25% to US$ 5.77b; the construction division gained 2% to finish at US$ 1.63 billion.
Lower commodity prices and falling farm incomes put pressure on demand for agricultural machinery, particularly larger items such as combine harvesters and large tractors traditionally bought by Canadian and North American grain farmers.
Deere predicts the market in Brazil will fall by 15-20% due to economic uncertainty and the high-interest government loans normally used to fund agriculture.
The Canadian and US markets look likely to fall by only 25% as the the livestock sector show signs of rallying on the back of low grain prices.
The recently announced Milk Sustainability Centre – a collaboration between global giant John Deere and milking and feed specialists De Laval – is said to deliver dairy farmers a new tool to enhance efficiency and sustainability, while also rising to the challenges of changing regulations that affect their businesses.
Agri-tech company Precision Farming is linking with John Deere’s Operations Centre guidance technology to automate nutrient and spray record-keeping and Nitrogen Cap compliance for farmers.
Three New Zealanders took top honours at the fourth annual John Deere Technician of the Year Awards.
John Deere's 6M Series tractors have been given a major update for 2025 with more speed and power across the 13-model range and, for the first time, will include four models above 200hp and a 50km/h transmission.
Probably best known for its tractors, harvesters and farm equipment, it looks like John Deere is about to put its long-recognised and trademarked catch phrase of ‘Nothing Runs Like a Deere’ into practice.
An eight million dollar, three year campaign to get wealthy Chinese to buy New Zealand beef and lamb is now underway.
The country's largest lender to the agriculture sector says it's not favouring home loans over farm and business lending.
Reeling from two consecutive years of heavy losses, Alliance says it has appointed Craigs Investment Partners to explore external capital-raising options.
Meat company Alliance has posted a second consecutive trading year of a heavy loss.
Red meat farmers are warning that wholesale conversion of farms into forestry to achieve climate change targets will be unsustainable for the country.
The horticulture sector is a big winner from recent free trade deals sealed with the Gulf states, says Associate Agriculture Minister Nicola Grigg.
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