Deere & Co. will report its 4QFY14 earnings on Wednesday (Nov. 26), but most analysts don’t expect results much different than what most other ag equipment manufacturers have already reported.
AGCO reported its third quarter net sales were $2.2 billion, a 13% drop from third quarter sales in 2013. For the first 9 months of 2014, net sales were down 8.7% vs. last year. AGCO’s North American sales for the first 9 months of the year were down 10.3%.
In a note, Steven Fisher, analyst for UBS, said, “The deterioration in North America continues, with the third quarter’s -23% down sharply from second quarter’s -13%.”
Net sales in CNHI’s industrial segment were $7.4 billion, down 6% compared with the third quarter of 2013. Net sales for farm equipment were $3.7 billion for the quarter, down 11.6% from a year earlier.
Michael Shlisky, analyst, Global Hunter Securities, said in a note, “While anticipated growth in construction and profitability improvement initiatives are promising, heavy ag markets are expected to remain challenged in 2015 and potentially into 2016.”
Trimble reported revenue of $584.8 million, up 5% compared to the third quarter of 2013. However, field solutions revenue, the company’s ag segment, was down 11% from last year. Net income was $11.8 million, down 78% year-over-year.
Steven Berglund, Trimble’s president & CEO, said, “Our current outlook for 2015 for agriculture assumes our base market will retreat by another 15% to reflect general industry expectations.”
Titan International sales for the third quarter were $449.6 million, down 9.6% compared to the third quarter of 2013. Net income was $9.1 million, compared to $8.1 million last year. The company indicated that it has eliminated nearly 800 positions in anticipation of the decline.
Kubota’s revenues increased 2.2% vs. the same time last year to $6.5 billion. The company’s farm and industrial machinery segment revenues increased by 2% year-over-year to $5.2 billion, which accounted for 80.4% of consolidated revenues. Kubota attributes the increase in farm and industrial machinery revenues to higher revenues in North America and Europe.
On Nov. 20, Raven reported a 24% decline in overall sales in its Applied Technology division. Sales during the third quarter of 2014 topped $43 million, compared to $33.2 million during the same period this year. Raven’s President and CEO Daniel Rykhus said as weak commodity prices continue to erode grower sentiment, demand remained subdued for precision agricultural equipment. Rykhus said that the company plans to rebalance its profit mix through aggressive growth of Raven’s Engineered Films and Aerostar divisions, while shifting the Applied Technology Division’s percent of total operation profit from 65% to about 50% during the next 2 years.