Deere Earnings Jump in 3Q
Aug. 15, 2000
MOLINE, Ill. (AP) _ Deere & Co.'s earnings more than doubled in third-quarter earnings due to a rebound in sales of agricultural machinery, manufacturing efficiencies and the inclusion of results of a recently acquired forestry equipment maker.
Deere earned $172.4 million, or 72 cents a share, in the three months ended July 31, up from $68.9 million, or 29 cents a share, a year earlier.
Revenue rose to $3.63 billion for the third quarter, up from $3.04 billion last year.
The results reported Tuesday exceeded the expectations of analysts surveyed by First Call/Thomson Financial, who expected earnings of 59 cents a share.
President and CEO Robert Lane said the company gained market share during the quarter despite the continued depressed prices. ``These results speak well of our success in profitably expanding all our businesses,'' he said.
But Deere stock was down 10.1 percent, or $3.75 a share, to close at $33.25 Tuesday on the New York Stock Exchange.
Even as it reported the increase in third-quarter results, Deere cautioned that ``weakness in the fundamentals of the farm equipment economy is likely to continue next year'' with industry sales of farm equipment in the U.S. and Canada likely to be flat to down 5 percent.
Deere recently acquired Timberjack Group for $600 million to create one of the world's largest producers of forestry equipment. In addition to the increased sales from that acquisition and other Deere products, the company said its earnings also were helped by lower pension and health care costs for employees.
For the first nine months of the fiscal year, Deere earned $414.4 million, or $1.75 per share, versus $268.7 million, or $1.15 per share, last year.
Revenue rose 12 percent to $8.33 billion from $7.42 billion a year ago.