The Moline, Illinois-based heavy-equipment manufacturer earned $665.8 million, or $2.11 a share, as worldwide net sales fell 18 percent to $9.25 billion. Wall Street analysts surveyed by Refinitiv were expecting earnings of $1.62 a share on revenue of $7.69 billion.
“We’re confident the company will successfully manage the pandemic's effects and strengthen its position serving customers in the future,” CEO John May said in a statement.
|DE||DEERE & CO.||421.25||+7.65||+1.85%|
Deere took a number of actions to bolster its balance sheet, raising $4.5 billion through medium- and long-term funding as well as cutting operating expenses and capital spending. The company had $8.9 billion cash at the end of March.
Equipment sales, which made up 89 percent of total revenue, fell 20 percent year-over-year to $8.22 billion. Agriculture and turf sales fell 18 percent while construction and forestry sales slid 25 percent.
Deere recorded a $114 million pretax writedown related to its minority stake in an equipment company in South Africa.
Looking ahead, Deere sees full-year 2020 net income of $1.6 billion to $2 billion, but warned the COVID-pandemic could "negatively affect" its results and future financial position.
Deere shares fell 18 percent this year, worse than the S&P 500's 8.74 percent decline.