UPDATE: Deere Posts Upbeat Q1 Earnings, Issues Weak Sales Outlook

reported stronger-than-expected earnings for the fiscal first quarter. However, the company cut its equipment sales forecast for fiscal 2015. The Moline, Illinois-based company posted quarterly earnings of $386.8 million, or $1.12 per share, compared to $681.1 million, or $1.81 per share, in the year-ago quarter. However, analysts were expecting earnings of $0.83 per share. The company's total revenue slipped to $6.38 billion from $7.65 billion. Its equipment sales shrank 19% to $5.61 billion, versus analysts' estimates of $5.53 billion. Sales for its agriculture and turf segment fell 27% to $4.08 billion, while sales for construction and forestry segment climbed 13% to $1.52 billion. Net income for the company's equipment operations fell to $241 million for the latest quarter, down from $543 million previous year. However, net income from financial services rose to$156.8 million from $142.2 million. "Deere's first-quarter performance reflected sluggish conditions in the global farm sector, which reduced demand for agricultural machinery, particularly larger models, and led to lower sales and income," said Samuel R. Allen, chairman and chief executive officer. "At the same time, our construction and forestry and financial services divisions had higher profits, showing the benefit of a well-rounded business lineup. Deere's results also demonstrated the progress we've made creating a more flexible, responsive cost structure." For the year, Deere now projects equipment sales to decline 17% year-over-year, versus its earlier forecast of a 15% drop. The company now expects FY15 net income of about $1.8 billion. For the second quarter, Deere expects equipment sales to fall 19% y/y. Deere shares fell 0.57% to $91.19 in pre-market trading.