Deere & Company (NYSE:DE) Q3 2019 Earnings Conference Call - Final Transcript
Aug 16, 2019 • 10:00 am ET
Good morning. Welcome to John Deere and Company Third Quarter Earnings Conference Call. Your lines have been placed on listen-only, until the question-and-answer session of today's conference.
I'd now like to turn over the call to Mr. Josh Jepsen, Director of Investor Relations. Thank you. You may begin.
Hello, good morning. Also on the call today are Ryan Campbell, our Chief Financial Officer; Luke Chandler, Chief Economist; and Brent Norwood, Manager of Investor Communications.
Today, we will take a closer look at third quarter earnings, then spend some time talking about our markets and our current outlook for fiscal 2019. After that, we will respond to your questions. Please note that slides are available to complement the call this morning. They can be accessed on our website at www.johndeere.com/earnings.
First, a reminder, this call is being broadcast live on the Internet and recorded for future transmission and used by Deere and Company. Any other use, recording or transmission of any portion of this copyrighted broadcast without the expressed written consent of Deere is strictly prohibited. Participants in the call, including the Q&A session, agree that their likeness and remarks in all media maybe stored and used as part of the earnings call.
This call includes forward-looking comments concerning the Company's plans and projections for the future that are subject to important risks and uncertainties. Additional information concerning factors that could cause actual results to differ materially is contained in the Company's most recent Form 8-K and periodic reports filed with the Securities and Exchange Commission. This call may also include financial measures that are not in conformance with accounting principles generally accepted in the United States of America or GAAP. Additional information concerning these measures, including reconciliations to comparable GAAP measures, included in the release and posted on our website at johndeere.com/earnings under Quarterly Earnings and Events.
John Deere completed the third quarter, with results reflecting a higher degree of uncertainty over the agricultural sector in North America. Concerns over market access, near-term demand for commodities and weather continue to challenge the industry, and have partially overshadowed a heightened outlook for farm incomes in the US.
Meanwhile, some foreign markets, such as Brazil, have shown continued signs of strength as strong crop production and increased exports have benefited the local industry. In construction and forestry, in-market demand remains strong, resulting from broad-based industry drivers, such as GDP growth, oil and gas activity, and infrastructure investment. With order books extending through most of the fourth quarter, the division is on track for a solid finish to the year.
Now, let's take a closer look at our third quarter results, beginning on Slide 3. Net sales and revenue were down 3% to $10 billion. Net income, attributable to Deere and Company, was $899 million or $2.81 per diluted share. The results included a favorable benefit to the provision for income taxes due to US tax reform. Excluding this item, adjusted net income was $867 million or $2.71 per diluted share.