Deere & Company released their earnings report for the third quarter on Friday, indicating $511.6 million over the quarter that ended July 31.
The company states that the same period in 2014 amounted to $850.7 million.
"John Deere's third-quarter results reflected the continuing impact of the downturn in the farm economy as well as lower demand for construction equipment," Samuel R. Allen, chairman and CEO, said. "Nevertheless, all of Deere's businesses remained solidly profitable, benefiting from the sound execution of our business plans and the success of our efforts to develop a more agile cost structure. As a result, the company continues to be well-positioned to provide customers with technologically advanced products and services, while funding its growth plans and returning cash to stockholders."
The company reports net income for the first nine months of the year at approximately $1.589 billion compared to the $2.513 billion over the same time period in 2014.
Decreases in net sales and in revenues amounted to approximately 20 percent. Worldwide equipment operations net sales decreased by approximately 22 percent in the quarter and 20 percent over the nine-month period. Unfavorable currency translations also had an effect of approximately 6 percent and 4 percent over the quarter and nine-months respectively.
The company predicts that net sales will fall by approximately 21 percent in fiscal year 2015 compared to 2014. Allen states that performance over this fiscal year is a sign of resilience as they are making a profit during a difficult environment and fosters the need to establish a wider range of revenue potential.
"We believe our steady investment in new products and geographies will make Deere the provider of choice for a growing global customer base and that the impact of these actions will become increasingly clear when our end markets recover," Allen said.