Replies to post #8739 on The Rising Influence of Rising Affluence

[DewDiligence]

US corn and soybean production expected to be biggest ever (which is bearish for the prices of these commodities):

http://online.wsj.com/articles/corn-soybean-yields-shoot-higher-1408572785

[DewDiligence]

DE lays off 460 employees (as expected from previous CC):

http://finance.yahoo.com/news/deere-announces-waterloo-layoffs-130000314.html

When Deere announced third quarter earnings on August 13th, the company said it planned to reduce agricultural equipment production for the balance of the year. Deere has emphasized that the company must match the size of its manufacturing workforce with market demand to remain globally competitive. Deere had hired several hundred manufacturing employees in recent years to meet increased demand for products manufactured in its Midwest U.S. factories.

DE has not rescinded its goal of reaching $50B in sales during FY2018 (#msg-60344244), but the path to get there will evidently not be a straight line.

[DewDiligence]

DE -2% on weaker-than-expected FY2015 guidance:

http://online.wsj.com/articles/deere-projects-sharp-decline-in-farm-equipment-sales-1417005521

Looking to the year ending in October, the company expects total equipment sales to drop 15%, with a 21% decline in the first quarter. Deere forecast earnings for the year of $1.9 billion, while analysts called for $2.2 billion.

That FY2015 would be a down year was already a foregone conclusion due to weak crop prices; the only question was the magnitude of the drop. (DE’s fiscal year ends Oct 31.)

DE’s own GFY4Q14 PR:
http://finance.yahoo.com/news/deere-announces-fourth-quarter-earnings-120000296.html