Deere: quarterly profit up, but cost pressures weigh
(CercleFinance.com) - Deere & Company reported quarterly profit that is up 54% on Wednesday, driven by strong sales at its farm machinery in the Americas and construction equipment.
The Moline, Illinois-based company reported fourth-quarter net profit of 784.8 million dollars, or 2.42 dollar a share, compared with 510.3 million dollars, or 1.57 dollar a share, a year earlier.
Sales rose 18% to 8.3 billion dollars.
However, Deere said that it is still facing cost pressures for raw materials such as steel, which are being addressed through pricing actions and cost reduction measures.
For fiscal 2019, the group said that net sales and revenues are expected to increase by about 7%, with net income set to be around 3.6 billion dollars.
The company's shares were down 3.6% in pre-market trading on the New York Stock Exchange on Wednesday.
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