MOLINE, Ill. (AP) – Deere’s first-quarter profit declined, reflecting softer demand for agricultural machinery. Its performance topped analysts’ expectations, but its 2015 guidance appeared to disappoint.
The company said that falling farm incomes and lower commodity prices are putting pressure on demand for agricultural machinery, particularly larger models.
Shares slipped in Friday premarket trading.
The Moline, Illinois-based company earned $386.8 million, or $1.12 per share, for the three months ended Jan. 31. A year earlier it earned $681.1 million, or $1.81 per share.
The results still beat Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 83 cents per share.