On a GAAP basis, net income fell to $1.13 billion, or $3.52 per
share, from $1.20 billion, or $3.67 per share, last year. Adjusted EPS rose 12%
to $3.52 but fell short of the forecasts of $3.61.
Net sales for the equipment operations increased 5%
year-over-year to $10.2 billion. Deere recorded sales increases in the
Agriculture & Turf and Construction & Forestry segments of 3% and 11%,
respectively, helped by higher shipment volumes and price realization. Financial
Services revenue grew 11% to $886 million.
The company’s financial services subsidiary John Deere Capital Corporation recorded a 14% growth in revenue to $703 million.
The company lowered its guidance for fiscal-year 2019 due to uncertainty in agricultural markets. Net sales and revenue are now forecasted to increase 5% versus the prior target of 7%. Net income attributable to Deere & Company is expected to be around $3.3 billion versus the previous guidance of $3.6 billion. Company equipment sales are expected to increase by about 5% for the year.
Industry
sales of agricultural equipment in the US and Canada are forecast to be flat to
up 5% for the full year of 2019, while industry sales in the EU28 member
nations are forecast to be about flat. Industry sales of turf and utility
equipment in the US and Canada are expected to be flat to up 5% for 2019. In forestry,
global industry sales are expected to be flat to up 5% mainly due to improved
demand in EU28 countries and Russia.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.