UPDATE: Deere Posts Upbeat FQ2 Profit, Lowers Sales Outlook

Deere & Co

reported 9.5% drop in its fiscal second-quarter profit. Deere projects current-period global agricultural-equipment sales to fall 4%, versus analysts' expectations for a 7% decline. It also expects a 4% drop in fiscal year equipment sales, versus its earlier forecast of 3% decline. The company also backed its full-year earnings forecast. Deere's quarterly earnings fell to $980.7 million, or $2.65 per share, versus a year-ago profit of $1.08 billion, or $2.76 per share. Its revenue slipped 8.9% to $9.95 billion. However, analysts were expecting earnings of $2.47 per share on revenue of $9.65 billion. Deere's equipment sales dropped 10% to $9.25 billion. Deere in February expected a 6% drop in equipment sales. Its US and Canada equipment sales shrank 12% for the quarter. Deere's agriculture and turf sales fell 12% to $7.65 billion, while construction and forestry sales rose 1.7% to $1.6 billion. The company's press release offered the following comment from Samuel R. Allen, chairman and chief executive officer: "John Deere is on its way to another year of solid financial and operating performance." Deere shares fell 0.65% to $93.00 in pre-market trading.