CHICAGO (Reuters) — A weak global agriculture sector weighed heavily on quarterly results posted by Deere & Co. on Friday, but earnings still topped expectations and the farm equipment maker raised its full-year profit forecast despite a worsening sales outlook.
Deere said sales for its fiscal year 2015 ending Oct. 31 would be 19 percent down from a year ago, compared with its previous forecast of a 17 percent drop. Sales will be hurt in part by a stronger U.S. dollar.
Sales for agricultural equipment in the United States and Canada should fall about 25 percent this year, it said.
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Lower commodity prices and falling farm incomes are putting pressure on demand for agricultural machinery, especially for larger models, Moline, Illinois-based Deere said. It gets nearly two-thirds of revenue from farm and turf machinery.
The company also forecast third-quarter profit down 17 percent from the previous year.
But full-year profit should hit US$1.9 billion, up from its prediction of $1.8 billion in late February, it said.
The company reported a profit of $690.5 million, or $2.03 per share, for its second quarter ended April 30, down nearly 30 percent from $980.7 million, or $2.65 per share, a year earlier.
Analysts expected earnings per share for the quarter of $1.55.
Quarterly revenue fell almost 18 percent to $8.17 billion from $9.95 billion a year earlier. Analysts were looking for $7.53 billion.
