Deere 1Q profit rises, but projects 3 per cent revenue decline this year as farm sales slow

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FILE - In this April 2, 2012 file photo, Derek Long uses a John Deere tractor to disk and cultivate a field in preparation for planting corn in Loami, Ill. Deere & Co. reports quarterly earnings on Wednesday, Feb. 12, 2014. (AP Photo/Seth Perlman, File)

MOLINE, Ill. – Deere & Co. says its first-quarter net income rose almost 5 per cent, but it projected a slowdown in sales of farm equipment this year.

High crop prices have put money into farmers’ pockets and driven a boom in demand for Deere’s tractors and other motorized farm gear. But Deere says demand for farm equipment is “moderating.” It says farm and construction equipment sales will fall 3 per cent this year, and will fall 6 per cent in the second quarter. Its profit guidance for the year is unchanged at about $3.3 billion.

For the quarter that ended Jan. 31, Deere earned $681.1 million, or $1.81 per share. Revenue from equipment sales rose 2 per cent to $6.95 billion as it raised prices.

Both its profit and revenue beat analyst expectations.

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