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In announcements made days apart last week, Deere released reports that confirmed a down ag market but offered optimism about the companies bottom line.

Specifically, in a message to shareholders at the company’s annual meeting, Chairman and CEO Sam Allen said Deere makes money for investors even when farmers are suffering.

In a video shown to about 350 shareholders, Allen said Deere will implement the same business strategy it has used for seven years—but with a few additions.

He said: “We continue to focus on sales growth, and we’ve adopted a more meaningful metric for that growth. We’re determined to grow faster than our chief competitors. And we’re increasing our commitment to precision ag, combining our superior equipment, precision technology and dealer services. We’re also making big adjustments to our structural costs, to address the cyclical nature of our major markets around the world.”

Those structural costs relate to an announcement in a quarterly report last year in which Deere vowed to cut $500 million in costs this year and next. Ken Golden, director of global public relations, said the company will save the money through personnel cuts, lower material costs, and limiting research and development spending.

In an article published in Market Realist in November, the cuts were broken down to roughly one-third derived from direct and material cost reductions. The article said lower material costs relate to “the company leveraging its existing supplier relationships as well as resourcing and designing costs out of its products.”

In its most recent first-quarter report, Deere said the worst appears to be over for the agriculture industry.

Its current outlook calls for a 4 percent increase in sales this year. It had previously projected a decrease of 1 percent. Data that supports that increase includes worldwide sales projections.

Sources: Peoria Public Radio, Market Realist, and Deere