John Deere down on volumes and currency

Revenues for John Deere’s Construction & Forestry business were down -13% in the third quarter of the fiscal year to US$ 1.53 billion. Operating profits for the division fell -34% to US$ 129 million.

A company statement said, “Sales for the quarter were lower mainly as a result of lower shipment volumes and unfavourable effects of currency translation, partly offset by price realisation.”

It added that in the year to date its revenues were more or less level with 2014, with higher volumes of equipment being sold and better prices being achieved, although these improvements were eroded by less favourable exchange rates.

John Deere expects its worldwide sales of construction and forestry equipment to be down about -5% in the 2015 fiscal year. “The forecast decline in sales reflects the impact of weakening conditions in the North American energy sector, as well as lower sales outside the US and Canada,” said the company.