Deere & Company (NYSE: DE) reported net income of $517 million for the first quarter, or $1.63 per share, compared with net income of $498 million, or $1.54 per share, for the prior-year quarter,
The Moline, Illinois company pointed to worldwide net sales and revenues decreasing 4% in the first quarter of 2020 to $7.631 billion. Net sales of the equipment operations were $6.530 billion for the quarter, compared with $6.941 billion in 2019.
In terms of guidance, net income attributable to Deere & Company for fiscal 2020 is forecast to be in a range of $2.7 billion to $3.1 billion.
"John Deere's first-quarter performance reflected early signs of stabilization in the U.S. farm sector," said CEO John C. May.
"Farmer confidence, though still subdued, has improved due in part to hopes for a relaxation of trade tensions and higher agricultural exports. At the same time, activity in the construction sector has slowed leading to lower sales and profit for our Construction & Forestry division.
“Also impacting results in Deere's construction equipment business were our actions to reduce factory production and lower inventories in response to current market conditions. Additionally, the quarter included costs of a voluntary employee-separation program, which is among the steps Deere is taking to improve flexibility and efficiency."
DE shares jumped $13.67, or 8.2%, to $179.50 early Friday.
