Deere easily tops Wall Street expectations
THE ASSOCIATED PRESS August 14, 2013 8:26AM
Deere & Co.’s third-quarter net income rose 27 percent, driven by booming agricultural activity in North and South America. The company easily beat most expectations. | AP file photo
MOLINE — Deere & Co.’s third-quarter net income rose 27 percent, driven by booming agricultural activity in North and South America. The company easily beat most expectations, and shares are rising before the opening bell.
The farm and construction equipment manufacturer earned $997 million, or $2.56 per share, well ahead of the $2.17 per share that Wall Street was looking for.
Deere’s shares added $1.09 to $85 before the market open.
Revenue climbed 4 percent to $10.01 billion, the company said Wednesday, also topping most expectations of analysts polled by FactSet.
The company last year booked earnings of $788 million, or $1.98 per share.
For the three months ended July 31, worldwide equipment sales increased 4 percent on higher prices. Equipment sales rose 4 percent in the U.S. and Canada and 5 percent in other regions.
Agriculture and turf segment sales rose 8 percent on increased prices and higher shipment volumes. Construction and forestry sales fell 11 percent on lower shipment volumes.
For the fourth quarter, Deere anticipates equipment sales falling about 5 percent as it faces a tough year-ago comparison because factories were working quickly to catch up with customer orders at that time.
The Moline, Ill., company foresees full-year equipment sales rising approximately 5 percent and agriculture and turf sales increasing about 7 percent. Construction and forestry equipment sales are predicted to drop about 8 percent, mostly due to a cautious outlook on U.S. economic growth.