Lower demand for farm equipment is affecting Deere and Company's bottom line. But it still predicts full-year profits will be the second highest ever. Deere is reporting third quarter earnings of $851 million. That’s $2.33 per share, compared to $2.56 last year. Ken Golden, Director of Global Public Relations, says worldwide sales from May through July dropped five percent to $9.5 billion. Sales fell eleven percent in Deere's Agriculture and Turf Division. He says that means production schedules will change.
"Production would be cut back in the 4th quarter to meet current market demand. That's not anything new for us. We have said we’re committed to always cutting production to market levels.”
But Golden says other divisions like construction and forestry are benefitting from growth in the US economy. Deere has revised its full-year earnings projection to $3.1 billion dollars, compared to its spring prediction of $3.3 billion.