News

A rough second quarter forDeere

A tough second quarter for Deere & Company with profits down 38 percent. The company says equipment sales fell 17 percent with the sharpest declinesoutside North America.

Earnings for the quarter were $472.3 million or $1.11 per share for the quarter ending April 30th. Last year the company earned $763.5 million or $1.74 per share in the same quarter.

Sales of farm equipment fell 4 percentwhile commercial and consumer product sales dropped 24 percent. Construction and forestry equipment sales fell 55 percent compared to a year ago.

The Moline, Illinois-based company has been preparing for this, last month they cut production, laid off more than a thousandworkers and combined the agricultural, commercial and consumer divisions to cut costs and streamline operations.

As a result of the second quarter numbers, Deere has cut its 2009 net income forecast to $1.1 billion from the $2 billion it forecast late last year.