Deere Tops Estimates Despite 30% Drop in Profit Amid Lower Demand

Shares of Deere (DE) were rising on Friday following the farming equipment maker's better-than-expected quarterly earnings. Although Deere's second-quarter profit fell nearly 30% year-over-year to $690.5 million, or $2.03 a share, it still topped analysts' expectations for earnings of $1.55 a share, according to Thomson Reuters. Revenue also fell almost 18% to about $8.1 billion, which also topped estimates of $7.5 billion. Deere said lower commodity prices and falling farm incomes are putting pressure on demand for agricultural machinery, especially for larger models. The company said the better-than-expected results were aided by solid execution and cost management. Chairman and chief executive officer Samuel Allen said in a statement, 'John Deere's second-quarter results were noteworthy in light of the weak conditions that continue to affect the global agricultural sector. Our performance reflected the adept execution of our operating plans and contributions of a well-rounded business lineup.' Deere did warn that equipment sales are projected to decrease about 19% for fiscal 2015 and to be about 17% lower for the third quarter compared with year-ago periods. TheStreet's Brittany Umar reports from New York.