Ahead Of Deere's Q1 Results

(RTTNews) - Agricultural machinery maker Deere & Co. (DE) claims it remain well-positioned to serve its customers while continuing to make investments in quality and innovation that are designed to drive growth in the future.

The company has also been proactively controlling expenses, costs and managing assets. Moreover, the company believes that it "can continue to earn solid returns even in a weak farm economy, deliver financial performance, much improved over downturns in the past and longer term see substantial benefits from the world's growing need for advanced equipment and technology solutions."

For fiscal 2016, net income attributable to Deere & Co. is anticipated to be about $1.4 billion, lower than $1.94 billion in fiscal 2015. Company equipment sales are projected to decrease about 7% for fiscal 2015 and to be down about 11% for the first quarter. The Street expects the company to earn $4.24 per share for the year on revenues of $23.66 billion for fiscal 2016.

"Although our forecast calls for lower results in the year ahead, the outlook represents a level of performance that is considerably better than we have experienced in previous downturns," Chairman and Chief Executive Officer Samuel Allen said.

The company is slated to release its first-quarter results before the bell on Friday, February 19, with analysts polled by Thomson Reuters estimating earnings of $0.70 per share on revenue of $4.94 billion. Analysts' estimate typically exclude certain special items.

In the previous quarter, the company's performance benefited from the adept execution of its business plans and disciplined cost management.

Fourth-quarter net income attributable to the company fell to $351.2 million or $1.08 per share from $649.2 million or $1.83 per share for the same period last year. On average, 22 analysts polled by Thomson Reuters expected earnings of $0.75 per share for the quarter. Analysts' estimates typically exclude certain special items.

Worldwide net sales and revenues decreased 25% to $6.72 billion from $8.97 billion in the previous year. Net sales of the worldwide equipment operations declined 26% from last year to $5.93 billion from $8.04 billion. Analysts expected revenues of $6.13 billion.

Sales included price realization of 1% for the quarter and an unfavorable currency-translation effect of 5%.

"John Deere has completed a successful year in the face of further weakness in the global agricultural sector and a slowdown in construction-equipment markets," said Samuel Allen, chairman and chief executive officer. "Sales and earnings for the year were the sixth-highest in company history, a notable achievement in light of the challenging market conditions we experienced."