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Deere reaps lower 1Q net
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February 16, 1999: 10:14 a.m. ET
But earnings, badly hurt by weak commodity prices, still beat estimates
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NEW YORK (CNNfn) - Deere & Co. plowed down Wall Street estimates Tuesday, despite weaker results, posting a stronger-than-expected fiscal first quarter.
The Moline, Ill.-based farm equipment manufacturer reported earnings of $49.7 million, or 21 cents per diluted share, for the quarter ended Jan. 31, beating analysts' expectations of 16 cents, according to tracking firm First Call.
But profit fell from the year-ago period, when Deere earned $203.3 million, or 81 cents per diluted share.
Sales fell to $1.12 billion from $1.45 billion a year ago.
"The farm sector is continuing to feel the effects of depressed agricultural-commodity prices," said Hans Becherer, the company's chairman and CEO. "Demand for agricultural equipment, especially large tractors, remained extremely weak during the quarter."
Results were severely affected by lower sales and production, especially of large tractors and combines, as well as by inefficiencies related to the production cutbacks, the company said.
Looking ahead, the physical volume of sales is expected to decline by about 13 to 15 percent in 1999 and second-quarter volume is projected to be 13 percent lower than in the comparable year-ago period.
Shares of Deere (DE) jumped 1-3/8 to 34 on the New York Stock Exchange Tuesday morning. 
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Deere & Co.
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