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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.
After what has been a difficult year with redundancies and factory downsizing, John Deere is reversing course, announcing it will bring 140 employees back to its Waterloo, Iowa operations as demand increases for its 8R and 9R tractors.
John Deere has announced the launch of three new models in both 8R and 8RX formats, featuring additional higher horsepower (HHP) options and improved performance, manoeuvrability, and versatility.
Easily missed on its expansive Agritechnica site, John Deere offered visitors to the bi-annual event, the first opportunity in Europe to see John Deere’s E-Power 130hp electric tractor prototype.
Grape and orchard growers will soon be able to take a closer look at John Deere’s new 5EN specialty narrow tractors, which offer more power and comfort in narrow vineyards or tree rows.
Recently released in Australia and New Zealand by John Deere, a unique new software platform offers near real time profitability monitoring across crops and individual paddocks.
A $20 million dairy beef programme will help farmers capture greater value from their animals.
A precautionary State of Emergency was declared for the Far North District at 1.18pm today (Thursday 26 March), for an initial period of seven days.
A New Zealand red meat product range with “tongue-soft” texture for elderly or unwell people has won the 2026 Meat Industry Association (MIA) Dragon’s Den competition.
The New Zealand Future Food and Fibre Summit, E Tipu 2026, is the place for farmers who want to stay ahead in a rapidly changing sector, says FoodHQ chief executive Dr Victoria Hatton.
OPINION: For some of us the threat of a fuel crisis is something we have dealt with before and are still here to tell the tale.
New Zealanders are spontaneously joining in the 60th birthday celebrations of the nation’s iconic rural programme, Country Calendar.
