“MOLINE, Ill. (AP) — Deere & Co. said on Wednesday that bad weather and weak economies will hinder sales growth this year.
The company reported better-than-expected second-quarter earnings and maintained its full-year profit prediction, but the outlook lowered Deere’s stock price in premarket trading.
Deere makes farm and construction equipment, and said sales of that gear would rise 5 percent during the current fiscal year, which is now half over. It had previously predicted growth of 6 percent.
The reduced sales expectation came after a long, cold winter in North America delayed the planting of this year’s seeds. It also slowed construction work and reduced demand for turf-care equipment, the company said.
CEO Samuel R. Allen also said Deere’s “near-term forecast is being tempered by lingering economic concerns in many parts of the world, which are restraining business confidence and growth.”
Deere’s second-quarter net income rose 3 percent to $1.08 billion, or $2.76 per share. That was up from $1.06 billion, or $2.61 per share, during the same period last year.
That topped analysts’ average estimates for earnings of $2.71 per share.
Revenue from equipment sales rose 9 percent to $10.27 billion from $9.41 billion a year earlier. Analysts had expected equipment revenue of $9.82 billion. Including financial services, Deere revenue rose 9 percent to $10.91 billion.
Deere raised prices 3 percent and shipped more gear during the quarter….”
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