Home Delivery |
Contact Us |
Jobs |
Alerts |
News Archives |
Site map |
Log In |
Webmail |
Internet Services |
Mobile
Text size: 
Deere has downbeat 2013 outlook, and shares fall
|
MINNEAPOLIS (AP) — Tractor maker Deere & Co. is taking a cautious view of 2013, as drought and economic uncertainty hold back spending in some of the world's biggest farm economies. Also, its most recent quarterly profit missed analysts' expectations. Deere shares fell $3.16, or 3.7 percent, to close at $82.83 Wednesday. Deere is the world's largest maker of agricultural equipment, like the bright green tractors and combines that prowl farm fields during planting and harvest seasons. Its fortunes rise and fall with those of farmers. In recent years, that's been a booming business as strong crop prices have put money in farmers' pockets. But there were signs of a slowdown in farm spending in Deere's outlook for the fiscal year that began this month. And with the so-called "fiscal cliff" of potential tax increases and spending cuts looming in the U.S., Deere is cautious about big spending projects. Deere expects agriculture sales in the U.S. and Canada to be flat for the year, as farmers continue to recover from a major drought in 2012. It predicted farmers will have $402.5 billion in cash receipts for 2013 — down by $2.5 billion from Deere's August prediction — but still higher than in 2012 or 2011. It also predicted that European sales would be flat to down 5 percent, and little changed in Asia. It expects 10 percent growth in South America. Overall Deere predicted that worldwide equipment sales will rise 5 percent for the year. Labor expenses are rising, too. Deere hired 5,000 more people this year to support its growth. And it will have spent $480 million shoring up its pension plans in fiscal 2012 — $5 million more than it had expected — and will spend some $550 million in the current fiscal year. Still, it predicted a fiscal 2013 profit of $3.2 billion, slightly above the expectations of analysts polled by FactSet. It said prices for its equipment will rise 3 percent for the year, on top of a 4 percent gain in the fourth quarter. In the quarter that ended Oct. 31, Deere's net income rose 2.7 percent to $687.6 million, or $1.75 per share. Revenue rose 14 percent to $9.79 billion. Analysts surveyed by FactSet expected earnings of $1.88 per share. A year ago Deere's net income was $669.6 million, or $1.62 per share. Equipment sales rose to $9.05 billion, topping analysts' forecasts of $8.93 billion. Sales were strong in the U.S. and Canada, rising 26 percent for the quarter. Elsewhere, sales fell 2 percent. Sales of agriculture and turf equipment rose 16 percent, while construction and forestry equipment sales rose 7 percent. In addition to farm equipment, Deere makes construction and forestry equipment such as backhoes, excavators, riding mowers and leaf blowers, making the company sensitive to movements in the global economy. Deere is holding off on big spending projects as much as possible until January because of economic uncertainty, said Chief Financial Officer Rajesh Kalathur on a conference call. "As the economics now become clearer, we may modify our plans. We will pull levers and cut down on investments if the scenario worsens, and we may accelerate our plans" if economies turn more positive, he said. For the full fiscal year, Deere earned $3.07 billion, or $7.63 per share, up from $2.8 billion, or $6.63 per share, during the prior year. Revenue rose 13 percent to $36.16 billion for the year. 
|
|
 |
|
||
Silvis, IL Details |
|||
Crispy-Topped Creamy Spinach
(More recipes)
| (More Print Ads) |
Today is Tuesday, May 21, the 141st day of 2013. There are 224 days left in the year.
1863 -- 150 years ago: On Monday the 11th inst. on Center Ridge in Mercer County,some citizens got out their cannon to celebrate the taking of Richmond. The gun wasoverloaded and burst. No one was injured, but one 30-pound piece went though thesecond story of a house.
1888 -- 125 years ago: The old folks concert at the Harper Theater last night to benefit St.Luke's Cottage Hospital, attracted a large audience.
1913 -- 100 years ago: Unless depredation by vandals in Rock Island parks is halted,special policemen will be assigned to night duty to protect the flowers and other property.
1938 -- 75 years ago: Station WHBF has received a special citation from Washington forits participation in Air Mail Week, which was observed this week throughout the nation.
1963 -- 50 years ago: A 10-year high in employment in the Quad-City area was reachedat the end of the last quarter, according to an industrial employment barometer releasedtoday.
1988 -- 25 years ago: Pee Wee teams will be able to play baseball and softball as usualon Diamond Three at Dorrance Park this summer, but after that, the ball field is doomed.County crews have put the diamond back in shape after heavy trucks marred the playingfield earlier this spring. Illinois Department of Transportation crews drove onto it to makeborings for the relocation of the junction of Illinois 84 and the Port Byron-Hillsdale road.
(More History)