A year after reporting a loss due to federal tax changes, Deere and Company reports first quarter earnings came in at the second highest level ever. Deere says from November through January, net income totaled 499 million dollars, or one-dollar-54 per share. And sales rose 16 percent to six-point-nine (6.9) billion dollars. Despite that, Spokesman Ken Golden says farmers are worried about how tariffs and trade policies will affect them.
“We’ve seen a lot of traffic in our dealerships, a lot of people are looking, getting quotes, ready to buy — but there is some uncertainty on what’s going to happen,” Golden says. He says the payments to make up for the tariff war have helped some.
“Government payments are one thing, actual cash from their crops are another. So it’s a good balance, it’s an imporant balance, but right now we are seeing a little bit of uncertaintly and a little bit of pause,” he says, ” I think pause is a great word here, because I think it is going to work itself out as the year moves on.” Deere is also optimistic about sales of construction, forestry, and road-building equipment.
He says housing starts and construction investment remains stable and they’ve seen an uptick in equipment rental — which he says is a big area for the company. Deere’s earnings projection for the full year is the same as three months ago. Deere expects profits will reach a record level of three-point-six (3.6) billion dollars. And sales will increase seven percent.
(story courtesy of Radio Iowa/Michelle O’Neill, WVIK)