The biggest recession in 60 years and the collapse of commodity prices impacted Deere & Company's worldwide sales of farm equipment and construction equipment, the company said today in its latest earnings report.
Company equipment sales are projected to be down about 21 percent for the full year and down about 34 percent for the fourth quarter, including a negative currency-translation impact of about 4 percent for the year and about 1 percent for the quarter.
Deere's net income is anticipated to be approximately $1.1 billion for 2009, despite the largest expected single-year sales decline in at least 50 years. Fourth quarter results will include the effects of significant production cutbacks that are being made in line with retail demand, Deere said.
In spite of present economic conditions, the company believes underlying trends remain quite promising for its businesses.
"John Deere is well-positioned to respond to the world's growing need for food, shelter, infrastructure and energy with a wide range of advanced equipment and services," said company president and CEO Samuel R. Allen.
"Further, we're confident our ability to adjust production in response to dynamic markets will help us come through today's challenging times in a strong condition, ready to seize future opportunities for growth," he added.