Deere & Company has lowered its forecast for the current fiscal year as sales suffer from the lack of vigor of agriculture and energy.
The manufacturer of the famous green John Deere tractor said Friday that farmers were now reluctant to purchase new equipment and sales of construction side were negatively influenced by the depression of the energy sector prices.
In the third quarter, the company established in Illinois has raked in profits of 511.6 million US dollars, down 37% compared to the same period last year. Its earnings per share of US $ 1.53, however, met expectations of Wall Street. Analysts polled by Zacks Investment Research had forecast a profit per share of US $ 1.47.
For its part, the turnover decreased by 18% to 6.84 billion US established, while analysts were expecting 7.11 billion US.
For the 2015 year, the company expects its net profit to be 1.8 billion US, while its previous forecast was state profits of $ 1.9 billion US.
Deere & Company expects that sales of agricultural equipment flex 25% in Canada and the United States. Globally, the decline should be about 5%.
The title of the company has risen 2.5% since the beginning of the year, while the S & P 500 fell 1%. Over the past 12 months, the action of Deere & Company rose by nearly 6%.