LONDON (ShareCast) - (Sharecast News) - Agricultural machinery and industrial equipment giant Deere & Co reported a big decline in fourth-quarter profits but still managed to smash forecasts, helping to overshadow disappointing guidance on next year's earnings.
Net income for the three months to 27 October totalled $1.25bn, down from $2.37bn a year earlier as worldwide net sales slumped 28% to $11.14bn.

Sales in the production and precision agriculture division dropped 38% year-on-year to $4.31bn, small agriculture and turf revenues were down 25% at $2.31bn, while turnover in the construction and forestry sector fell 29% to $2.67bn. The smaller financial services division also saw a sales decline of 9% to $173m.

Nevertheless, group earnings amounted to $4.55 per share for the fourth quarter, down from $8.26 previously but well ahead of the $3.87 consensus estimate.

Amid significant market challenges this year, we proactively adjusted our business operations to better align with the current environment," said chairman and chief executive John May.

"Together with the structural improvements made over the past several years, these adjustments enable us to serve our customers more effectively and achieve strong results across the business cycle."

Shares were rising in pre-market trading, up 1.5% at $411 by 0818 in New York, as investors shrugged off a weaker-than-expected profit outlook for the coming year.

Looking ahead, Deere & Co pencilled in net income of $5.0bn to $5.5bn for the year ending October 2025, forecasting double-digit sales declines across all three major divisions. The current consensus forecast was for a net income of $5.8bn.

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