Construction & forestry sales fell 28 percent in the third quarter of 2020, reported Deere & Co., to $2.187 billion from $3.023 billion in the same period last year. The company expects worldwide sales to be down 25 percent for the year, citing “market uncertainty as a result of Covid-19 as well as efforts to bring down field inventory levels.”
Deere projects North American construction equipment sales to decline by about 20 percent for the year.
Total sales for Deere & Co. were $8.925 billion for the third quarter, down 11 percent from the $10.036 billion reported in the same period of 2019. Year-to-date sales are down 12 percent, to $25.809 billion.
Deere reported net income of $811 million for the third quarter, down about 9 percent from the $899 million reported in Q3 2019. For the first nine months of the year, net income attributable was $1.993 billion, compared with $2.532 billion for the same period last year.
“With outstanding support from our dedicated global workforce and dealer organization, John Deere delivered a strong performance in the third quarter in the face of a serious global pandemic and uncertain market conditions,” said John C. May, chairman/CEO, in a prepared statement. “As we manage through the pandemic, Deere’s number-one priority continues to be safeguarding the health and well-being of its employees. Thanks to aggressive measures taken early in the crisis, we have had success keeping our employees safe, our factories and parts centers functioning, and our customers served.”
The company said “many uncertainties remain regarding the effects of the global pandemic that could negatively affect the company’s results and financial position in the future.” Deere has announced broad “employee-separation” programs that will be completed during the fourth quarter in support of its strategy to create a leaner, more agile organization.
“Although unsettled market conditions and related customer uncertainty are expected to have a moderating effect on key markets in the near term, we believe Deere is well-positioned to help make our customers more profitable and sustainable,” May said in a statement. “In addition, we are encouraged by the early benefits we are experiencing from the company’s recently launched smart-industrial operating model. We’re confident it will help accelerate our ability to deliver differentiated solutions to our customers, while contributing to improved efficiencies across the company.”
Source: Deere & Co.
