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Deere & Co's third-quarter profits fall short of Wall Street estimates

17/08/2018 15:53

(Sharecast News) - Deere & Co's third-quarter profits fell short of Wall Street estimates on Friday, with the company's shares retreating by 3.3% after it reported higher raw material and freight costs. However, the US tractor and harvesting combines manufacturer left its full-year earnings forecast unchanged, in the belief that replacement demand for large agricultural equipment would drag it over the line. Deere said it was "confident" it could deliver an adjusted net income of $3.1bn in 2018, well and truly besting the $2.2bn delivered a year earlier. While adjusted profits increased 31% year-on-year to $2.59 per share, that figure was well below consensus estimates for $2.75. Deere saw production costs as a percentage of net sales increase to 77% from 75.2% in the second quarter. The Illinois-based firm assured investors that it was working on addressing cost pressures by minimising expenses and price increases. Total equipment sales grew 36% to $9.3bn. As of 1630 BST, Deere shares had recovered from their earlier losses and were trading 1.03% higher at $138.76 each.

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