MOLINE, Ill. — Deere’s third-quarter profit fell 15 percent and the farming equipment maker believes that the same weak sales at home and abroad will cut into earnings for the year.
Deere, which makes lawn tractors in Grovetown, earned $850.7 million, or $2.33 per share, for the three months ended July 31. This beat expectations of $2.20 per share, according to a poll by FactSet. A year earlier the Moline company earned $996.5 million, or $2.56 per share.
Revenue from equipment sales fell to $8.72 billion from $9.32 billion. Total sales and revenues, which includes financial services and other revenues, declined to $9.5 billion from $10.01 billion.
Equipment sales for the U.S. and Canada dropped 8 percent.
“Deere’s third-quarter performance reflected moderating conditions in the global farm sector, which have negatively affected demand for farm machinery and contributed to lower sales and profits for our agricultural-equipment business,” said Chairman and CEO Samuel Allen. “At the same time, our construction and forestry and financial services divisions had higher profit, showing the benefit of a broad-based business lineup.”
Construction and forestry sales rose 19 percent during the quarter.
Deere now anticipates a 2014 profit of $3.1 billion, down slightly from its prior forecast of $3.3 billion.
Equipment sales are expected to fall approximately 6 percent for fiscal 2014 and drop about 8 percent for the fourth quarter. Deere previously predicted a 4 percent decline in equipment sales for the year.