John Deere has recorded revenues of US$ 7.875 billion for the second quarter, ending 30 April – a 4% decrease from the same period a year ago.
The company’s construction and forestry sector also saw its revenues decrease 16% to US$ 1.365 billion.
John Deere’s operating profit for the second quarter was US$ 495 million, representing a 28% decrease year-on-year.
Samuel Allen, chairman and CEO, said, “John Deere’s second-quarter performance reflected the continuing impact of the downturn in the global farm economy and further weakness in the construction equipment sector.
“In the face of challenging market conditions, Deere’s businesses benefited from the sound execution of operating plans, the strength of a broad product portfolio and our success creating a more flexible cost structure.”
The company’s equipment sales are projected to decrease some 9% for fiscal 2016, and to be about 12% lower for the third-quarter-compared year-on-year periods.
Included in the forecast is a negative foreign-currency translation effect of around 2% for the full-year and 1% in the third quarter.
For fiscal 2016, net income attributable to Deere & Company is anticipated to be about US$1.2 billion.
Samuel Allen said, “Although our forecast calls for lower results this year in light of ongoing market pressures, Deere is continuing to perform at a much higher level than in previous downturns.
“Deere’s financial condition remains strong and we believe the company is well-positioned to capitalize on attractive growth opportunities that will deliver value to our customers and investors in the future.
He added that the company is continuing to focus on ways to streamline its operations and make them more efficient and profitable.