John Deere sales and profits slump

John Deere reported 2009 Group sales of US$ 7.7 billion, down -28% on the US$ 10.7 billion recorded last year. Pre-tax profits plummeted -78% from US$ 1 billion in 2008 to US$ 236 million this year.

Sales for the construction and forestry division fell -45% to US$ 2.6 billion, down from US$ 4.8 billion 12 months ago, while following a 2008 pre-tax profit of US$ 466 million, the division recorded a 2009 loss of - US$ 83 million.

John Deere President and CEO, Samuel Allen said, "The profit decrease for the construction and forestry division was due to significantly lower production and shipping volumes, partially offset by improved sales prices, lower raw-material costs and reduced administrative and general expenses.

"We forecast an +18% increase in construction and forestry sales in 2010, helped by the aggressive inventory reductions we've achieved during 2009, which have enabled us to align production with retail demand," he said.