John Deere Reports Lower Third Quarter Sales

MOLINE, Ill. ?EUR??,,????'??+ Deere & Co. reported Tuesday that its profits slid 3.5 percent to $387.1 million for the quarter that ended July 31, down from $401.4 million during the same period last year.

The company said equipment sales dipped due to a lingering drought in Midwest farm states – including parts of perennial corn and soybean leaders Illinois and Iowa – and the western United States.

Dry weather also had a negative effect on sales of Deere’s riding lawn-care equipment, which were down 3 percent in the third quarter. The company said consumer equipment sales are now expected to dip 5 percent for the year, compared with a 3 percent increase in earlier estimates.

The company expects fourth-quarter sales will decline about 9 percent, with a 23 percent production decrease to better align inventory with demand. Chairman and CEO Robert W. Lane said reducing inventory also will set the stage for new models that will be launched in 2006.

“We’re confident these advanced products will enhance our market leadership and deliver even more value and productivity to our growing global consumer base,” Lane said in a statement.