Deere & Co. reported that its worldwide net sales and revenues decreased 4% in the first quarter of 2020, ended Feb. 2, to $7.63 billion. Net sales of the company’s equipment operations were $6.53 billion for the quarter, compared with $6.94 billion in 2019; a decline of 6%. At the same time, Deere’s net income for the quarter was up 4% to $517 million vs. $498 for the same period in 2019.

Deere 1Q20 Net Sales & Income

Deere & Co. reported that its worldwide net sales and revenues decreased 4% in the first quarter ended Feb. 2, 2020 to $7.63 billion. Net sales of the company’s equipment operations were $6.53 billion for the quarter, compared with $6.94 billion in 2019; a decline of 6%.

Net income for the quarter was up 4% to $517 million vs. $498 for the same period is 2019.

Deere 1Q20 Ag & Turf Sales

Year-over-year sales of Agriculture & Turf equipment for the quarter fell 4% to $4.49 billion from $4.68 billion. Operating profit increased 7%, to $373 million vs. $348 million in the first quarter of 2019. Operating margin improved to 8.3% compared to 7.4% a year earlier.

Deere Ag & Turf Sales 2020 Outlook

Deere’s worldwide sales of agriculture and turf equipment are forecast to decline 5-10% for fiscal year 2020, including a negative currency translation effect of about 1%. Industry sales of agricultural equipment in the U.S. and Canada are forecast to be down about 5%, driven by lower demand for large equipment in Canada. Industry sales of turf and utility equipment in the U.S. and Canada are expected to be about flat.

Deere 1Q20 ag and turf divisional outlook

Commenting on the company’s performance during the period, John May, Deere’s CEO, said, “John Deere’s first-quarter performance reflected early signs of stabilization in the U.S. farm sector. Farmer confidence, though still subdued, has improved due in part to hopes for a relaxation of trade tensions and higher agricultural exports.”

May added,  “Looking ahead, we are particularly encouraged by the broad use of precision technologies and believe the company is well positioned to strengthen its leadership in this vital area. In addition, we are proceeding with a series of measures to create a more focused organizational structure that can operate with greater speed and agility. These steps are leading to improved efficiencies and helping the company focus its resources and investments on areas that have the most impact on performance.”