John Deere Generated $420 Million Profit on 24 Percent Lower Revenues

Moline, Ill. - Deere & Co. announced worldwide net income of $420 million for the third quarter ended July 31, compared with $575.2 million for the same period last year.

Worldwide net sales and revenues declined 24 percent, to $5.885 billion, for the third quarter. Net sales of the equipment operations were $5.283 billion for the quarter, compared with $7.070 billion last year.

''John Deere has completed a solidly profitable quarter in the face of persistent global economic pressure and made further progress advancing its competitive position throughout the world,'' said Samuel Allen, president and CEO. ''We have seen continued benefit from strength in the U.S. market for large farm machinery and from our efforts to keep a tight rein on costs and inventories. Deere's construction and forestry business, as an example, is successfully executing carefully designed plans to adjust expenses and asset levels in response to the severe decline in its markets.''

Company equipment sales are projected to be down about 21 percent for the full year and down about 34 percent for the fourth quarter. Deere's net income is anticipated to be about $1.1 billion for 2009, despite the largest expected single-year sales decline in at least 50 years.