Despite a less-than rosy outlook for ag for the remainder of 2015, Deere & Co. expects to remain solidly profitable for the year. Its outlook calls for net income of $1.9 billion for fiscal 2015, up from its previous guidance of $1.8 billion. The company is projecting a continued recovery in its construction equipment business as well as “adept execution” of its operating plans.
In a statement, Samuel Allen, Deere’s chairman and CEO said, “John Deere's second-quarter results were noteworthy in light of the weak conditions that continue to affect the global agricultural sector. Our performance reflected the adept execution of our operating plans and contributions of a well-rounded business lineup.”
The company did warn that equipment sales are projected to decrease about 19% for fiscal 2015 and to be about 17% lower for the third quarter compared with year-ago periods.
In their presentation to analysts following the earnings release last Friday, Deere showed the following data, which detailed its ag outlook for the remainder of its fiscal year.