Deere 3Q results suffer from higher raw material, freight costs
This Sunday, June 8, 2014, file photo shows John Deere farming equipment at a dealership in Petersburg, Ill.
Farm equipment maker Deere & Co. on Friday reported fiscal third-quarter profit of $910.3 million, higher than the year-earlier level but less than Wall Street analysts expected.
The Moline, Illinois-based company said it had profit of $2.78. Earnings, adjusted for pretax gains, were $2.59 per share. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $2.77 per share.
Deere posted revenue of $10.31 billion in the period. Its adjusted revenue was $9.29 billion, beating Street forecasts. Five analysts surveyed by Zacks expected $9.17 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DE | DEERE & CO. | 400.32 | -0.28 | -0.07% |
"We have continued to face cost pressures for raw materials and freight, which are being addressed through a combination of cost management and pricing actions," the company said in a statement.
Deere shares fell nearly 4 percent in premarket action. Since the beginning of the year, they have fallen 12 percent, while the Standard & Poor's 500 index has climbed 6 percent. Shares have climbed 8.5 percent in the last 12 months.
The Associated Press contributed to this report.