Deere Beats Expectations Despite Smaller 2Q Profit, Revenue

   By Matt Grossman 
 

Deere & Co.'s results beat analysts' earnings and revenue guidance for its second quarter, but the company reported weaker results as the Covid-19 pandemic weighed on demand.

The Moline, Ill.-based company reported net income of $665.8 million, or $2.11 a share, compared with $1.14 billion, or $3.52 a share, for the same period a year earlier.

Analysts polled by FactSet expected earnings of $1.95 a share.

Deere's sales totaled $8.22 billion, down from $10.27 billion for the same period a year earlier. Analysts has forecast sales of $7.89 billion.

Including finance and interest income and other income, Deere's second-quarter revenue was $9.25 billion, which marked a decline from $11.34 billion in last year's second quarter.

Deere said it expects its global sales of construction and forestry equipment to fall 30% to 40% in 2020 due to uncertainty from the Covid-19 crisis and Deere's efforts to reduce inventories. It expects a 10% to 15% decline in sales of agriculture and turf equipment.

Write to Matt Grossman at [e-mail]

(END) Dow Jones Newswires

May 22, 2020 06:44 ET (10:44 GMT)

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