Davenport, Iowa – Quad Cities-based Deere and Company is reporting favorable second quarter earnings, despite Iowa farmers facing significant challenges from foul weather, poor commodity prices and international trade troubles.
During a conference call Friday morning, Brent Norwood, Deere’s manager of investor communications, detailed the outlook for Iowa’s largest manufacturing employer.
While the persistent uncertainty in agricultural markets weighs on the outlook, Norwood says other sectors of Deere’s diverse portfolio are performing very well.
A Deere news release says the ag sector is weighed down by ongoing concerns about export market access, near-term demand for commodities like soybeans, and a delayed planting season in much of North America. That’s causing farmers to become much more cautious about making major purchases.
Still, Norwood says the company’s second quarter shaped up well.
Deere officials have revised the full-year earnings forecast to $3.3 billion on a sales increase of about five-percent.
The release says: “Although the long-term fundamentals for our businesses remain favorable, softening conditions in the agricultural sector have led Deere to adopt a more cautious financial outlook for the year.”