{"id":17998,"date":"2016-02-19T11:15:49","date_gmt":"2016-02-19T16:15:49","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17998"},"modified":"2016-02-19T11:15:49","modified_gmt":"2016-02-19T16:15:49","slug":"deere-in-headlights-after-guidance-cut-sees-10-sales-drop-due-to-downturn-in-global-farm-economy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17998","title":{"rendered":"Deere In Headlights After Guidance Cut: Sees 10% Sales Drop Due To “Downturn In Global Farm Economy”"},"content":{"rendered":"

Deere In Headlights After Guidance Cut: Sees 10% Sales Drop Due To “Downturn In Global Farm Economy”<\/a><\/h3>\n
It is not just Caterpillar that continues to post horrendous numbers, and has now recorded 38 consecutive months of declining Y\/Y sales, double the length of the contraction of the great financial crisis. Moments ago heavy farm equipment maker Deere likewise shocked its investors with a round of terrible numbers, when at first it reported a revenue and EPS beat, announced it had earned $0.80 EPS in Q4, above the $0.71 estimate, on $5.53BN in revenue, well above the $4.90BN expected, however it was the unprecedented drop in the forecast that was the punchline.<\/div>\n
\n
\n

According to the company’s announcement,\u00a0equipment sales are projected to decrease about 10% for fiscal 2016 and to be down about 8 percent for the second quarter compared with the same period a year ago.\u00a0<\/strong><\/p>\n

Here is how CEO Samuel Allen tried to spin the cut in guidance which DE had previously seen at just -7%: “Although Deere expects another challenging year in 2016, our forecast represents a level of performance much better than we have experienced in\u00a0previous downturns,”<\/strong>\u00a0Allen said.<\/p>\n

Downturn<\/strong><\/em>? We thought the Fed was hiking because of the “strong recovery.”<\/p>\n

Some more details: Deere cuts 2016 U.S. farm cash receipts forecast to $381.3b, had seen $394.4b (Nov. 25)<\/p>\n

    \n
  • Cuts 2016 U.S. farm net cash income to $90.8b, had seen $106.9b (Nov. 25)<\/li>\n
  • Sees yr U.S. farm commodity price:\n
      \n
    • Corn 2015\/16 $3.60\/bushel vs prior $3.65<\/li>\n
    • Wheat 2015\/16 $5.00\/bushel, unchanged<\/li>\n
    • Soybeans 2015\/16 $8.80\/bushel vs prior $8.90<\/li>\n
    • Cotton 2015\/16 60c\/pound vs prior 59c<\/li>\n<\/ul>\n<\/li>\n
    • Cuts DE 2016 capex outlook to ~$775m from ~$800m<\/li>\n<\/ul>\n

      “This illustrates the impact of our efforts to establish a more durable business model and a wider range of revenue sources.”<\/p>\n

      Alas, a 10% drop in revenue does not validate the “durable business model” with more revenue sources.<\/p>\n

      …click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

      Deere In Headlights After Guidance Cut: Sees 10% Sales Drop Due To “Downturn In Global Farm Economy” It is not just Caterpillar that continues to post horrendous numbers, and has now recorded 38 consecutive months of declining Y\/Y sales, double the length of the contraction of the great financial crisis. Moments ago heavy farm equipment […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5939,12495,303,305,312,670,12496,4318],"class_list":["post-17998","post","type-post","status-publish","format-standard","hentry","category-economics","tag-caterpillar","tag-deere","tag-fed","tag-federal-reserve","tag-financial-crisis","tag-recovery","tag-samual-allen","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17998"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17998\/revisions"}],"predecessor-version":[{"id":17999,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17998\/revisions\/17999"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}