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Deere 3Q beats Street
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August 14, 2001: 9:27 a.m. ET
But equipment maker warns production cutbacks will hurt 4Q, 2001 results
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NEW YORK (CNNfn) - Farm and construction equipment maker Deere & Co. reported fiscal third-quarter earnings Tuesday that passed Wall Street expectations, but warned that a prolonged slowdown in the U.S. economy will hurt its full-year earnings.
The Moline, Ill.-based company reported earnings in the quarter ended July 31 of $71.8 million, or 30 cents a share, down from $172.4 million, or 72 cents a share, a year ago. Wall Street analysts surveyed by earnings tracker First Call expected 25 cents a share.
"Deere's third-quarter results continued to reflect the general economic slowdown and low farm commodity prices," CEO Robert W. Lane said. "Although we are pleased to have remained profitable in the face of such difficult conditions, we are continuing to take aggressive actions to further strengthen our competitiveness and drive more efficient asset levels."
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Those actions, which include production cutbacks and a previously announced early retirement program, will hurt fourth-quarter earnings, Deere said. Though Deere would say only that quarterly results will be under "significant pressure," it said it expects full-year earnings to be flat, including the effects of a one-time charge of about $140 million for production cutbacks.
Quarterly revenue fell to $3.58 billion from $3.63 billion a year ago, hurt by slowing demand for equipment and a strong U.S. dollar.
Deere (DE: Research, Estimates) shares closed Monday up 74 cents at $43.25. 
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