Deere and Company cuts 2015 earnings outlook - KWWL - Eastern Iowa Breaking News, Weather, Closings

Deere and Company cuts 2015 earnings outlook

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MOLINE, Ill. (KWWL) -

John Deere and Company announced they expect sales of agriculture and turf equipment to be down 25% in 2015 from 2014.

In their quarterly report released today, the Moline, Illinois-based company cited lower commodity prices and falling farm incomes as reasons for the drop.

Deere and Co. saw some improvements in sales of smaller horsepower equipment in the U.S. livestock sector, but they expect sales to be down in South America, Asia and the Commonwealth of Independent States.

Turf and utility sales are expected to be flat or up fiver percent in 2015.

The company reported a net income of $511.6 million in third quarter 2015, which ended July 31, down from $850.7 million in third quarter 2014.

In the first nine months of fiscal year 2015, Deere and Company reported a net income of $1.589 billion dollars, down from $2.513 billion in the first nine months of fiscal year 2014.

"John Deere's third-quarter results reflected the continuing impact of the downturn in the farm economy as well as lower demand for construction equipment," Samuel R. Allen, chairman and chief executive officer, said in a written statement. "Nevertheless, all of Deere’s businesses remained solidly profitable, benefiting from the sound execution of our business plans and the success of our efforts to develop a more agile cost structure. As a result, the company continues to be well-positioned to provide customers with technologically advanced products and services, while funding its growth plans and returning cash to stockholders."
 

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