The year 2014 may have a wonderful year for many and not so wonderful year for some. But it was definitely not a very happening year for the heavy equipment manufacturing industry. They had to struggle a lot of factors for the entire year; out of which competition was the biggest factor. Other than this, there were factors like global economic slowdown, unrest in the Middle East nations, the overall business slowdown that has largely affected the mining, oil and gas and construction sector and many more reasons that has slow paced the overall industry. Overall, it has not been a great year for the overall industry and the forecast is also not so pleasant. Big and small equipment manufacturing companies are affected alike by the slowdown in the global economy. The sales of the equipment have gone for a toss and there are not much takers available in the market. This is perhaps the reason why many companies have suffered losses and their sales graph shows a massive decline which they have not seen for years.
Talking especially about John Deere, it has not remained unaffected by the impact of the slow paced market conditions. John Deere is known for producing agricultural and heavy equipment machines had to take the beating of the market. Deer’s outlook gave the news that for the new fiscal year the situation will be grimmer and they do not see any major improvement in the market situation. The outlook suggests that the sales of the equipment is estimated to take a dip of more than 15 percent for the current year and may further scale down to 21 percent during the first fiscal quarter. They also estimated that the net income of the company will be around $2 billion compared to $3.16 billion in the year 2014. Things were much better in the year 2013 with earnings of $3.54 billion. The fall in the number of earnings only suggest the performance of the company. It will not be superficial to express that the company needs to take some time out to think and revamp its strategies. May be they need to make some changes here and there and need to focus on few very important issues that may kick off the sales number from where it is now.
The news of poor sales has already affected the price of their shares in the stock market making it more difficult for the company. The company’s earnings were totaled at around $35 billion in the year 2013 which has now come down to $32.9 billion. This dismal performance has not brought down the morale of the employees of the company. The CEO of the company is positive that the company will bounce back and this time with a bang. Though there has been a global pullback in the agricultural sector, still the company will show profits in the year 2015. They have intended to prepare a more resilient model of growth that will help John Deere to turn the table to their favor.