Ahead Of Deere's Q3 Results

(RTTNews) - Agricultural machinery maker Deere & Co. (DE) believes its financial condition remains strong and claims it is well-positioned to capitalize on attractive growth opportunities that will deliver value to its customers and investors in the future. Also, the company continues to focus on streamlining its operations and make them more efficient and profitable.

The company is slated to release its third-quarter numbers before the bell on Friday, August 19, with analysts polled by Thomson Reuters estimating earnings of $0.94 per share on revenue of $6.09 billion. Analysts' estimate typically exclude certain special items.

Q3, FY16 Outlook

The company's third quarter net sales are forecast to be down about 12% compared with 2015, including about two points of price realization and unfavorable currency translation of about one point.

Full year 2016 net sales forecast now calls to be down about 9%, with current net income target of about $1.2 billion. Previously, 2016 net income was expected to be about $1.3 billion.

In the last quarter...

Net income attributable to Deere & Co. was $495.4 million or $1.56 per share for the second quarter ended April 30 compared with $690.5 million or $2.03 per share for the same period of last year.

Net sales and revenues were down 4% to $7.875 billion.

The company's second-quarter results reflected the continuing impact of the downturn in the global farm economy as well as weakness in markets for construction equipment. Nevertheless all of its businesses remained profitable, and benefited from the sound execution of the company's operating plans, the strength of its broad product portfolio, and its more flexible cost structure.