Deere reports unexpected rise in 1Q profits, citing US farm industry 'stabilization' after trade war
Friday, 21 February 2020 Deere & Company (NYSE:DE) on Friday said the US farming industry, stung by the Trump administration’s trade war with China, is now showing early signs of stabilization. And as a result, the farm-equipment manufacturer reported better-than-expected fiscal first-quarter results, underscored by a surprise rise in profits. “John Deere’s first-quarter performance reflected early signs of stabilization in the U.S. farm sector,” CEO John May said in a statement. “Farmer confidence, though still subdued, has improved, due in part to hopes for a relaxation of trade tensions and higher agricultural exports.” READ: Deere’s earnings miss on ‘unsettled trade conditions’ in key markets Following Deere’s upbeat earnings announcement, its stock jumped 6.4% to $176.50 a share in pre-market trading in New York. For the quarter ended February 2, Deere earned net income of $517 million, or $1.63 per share, up from $498 million or $1.54 per share last year. Analysts estimated EPS of $1.26. Revenue slumped 4.4% to $7.63 billion but beat the $6.41 billion that was expected. The results include a $127 million pretax charge related to a voluntary employee-separation program. The Moline, Illinois-based company reiterated its full-year earnings forecast. Deere said its 2020 profit would range from $2.7 billion to $3.1 billion, as it forecast worldwide sales of agriculture and turf equipment to drop 5% to 10% and worldwide construction and forestry sales to drop 10% to 15%. Contact the author: [email protected] Follow him on Twitter @PatrickMGraham
The Office of the United States Trade Representative announced last month that tariffs as high as 100 percent could be added to products such as Irish and Scotch whiskeys, Cognac, and Parmesan cheese..