Market News

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.

It is important to remember that the value of investments can go down as well as up and it is possible to get back less than you invested, especially in the early years. Past performance is no guarantee of future returns and interest rates and dividends are variable and cannot be guaranteed in the future. Any tax treatment mentioned is based on personal circumstances and current legislation which is subject to change. In the event of a client having a complaint about our services we will do our best to resolve that complaint promptly and to the client's satisfaction. However if we are unable to do so, the client may have the right to complain to the Financial Ombudsman Service. Further information can be found on the Financial Ombudsman Services's Website at www.financial-ombudsman.org.uk.