Photo: By charles_hudson on Flickr
Farm equipment maker Deere has whiffed on earnings.The company reported EPS of $1.98 vs. estimates of $2.31.
Sales of $9.59 billion were basically in line with estimates.
Shares are off about 5% in pre-market.
Here’s the key part of the release.
Deere & Company (NYSE: DE) today announced worldwide net income attributable to Deere & Company of $788.0 million, or $1.98 per share, for the third quarter ended July 31, compared with $712.3 million, or $1.69 per share, for the same period last year.
For the first nine months of the year, net income attributable to Deere & Company was $2.377 billion, or $5.88 per share, compared with $2.130 billion, or $5.01 per share, last year.
Worldwide net sales and revenues increased 15 per cent, to $9.590 billion, for the third quarter and rose 13 per cent to $26.365 billion for nine months. Net sales of the equipment operations were $8.930 billion for the quarter and $24.454 billion for nine months, compared with $7.722 billion and $21.563 billion for the same periods last year.
“John Deere delivered record third quarter performance in both sales and income,” said Samuel R. Allen, chairman and chief executive officer. “Although a strong quarter, we are not satisfied that sales fell short of our expectations due to weakening in certain international markets and short-term manufacturing inefficiencies resulting from the introduction of a record number of new products.”
Allen noted that the company’s global presence continues to grow due to strong customer preference for the innovative line-up of John Deere products that have been introduced in the past year.