Deere Reports Spike in Year-Over-Year Sales

Deere earlier this month reported better-than-expected revenue for its third quarter and a spike in net income.

Deere’s revenue got a boost from strong sales in its agricultural and turf business, which came in at $6.29 billion.

The company’s net income also rose 42 percent on a year-over-year basis, thanks in part to lower corporate taxes.

Deere said disputes between the U.S. and its trading partners have not hit demand. Early orders for new machines are up in 2018.

Deere expects U.S. farm cash receipts in 2019 to be higher than in 2018 as rising demand for crops such as maize, wheat and cotton offset soft demand for soybeans.

The company also reported weaker-than-expected earnings because the company “continued to face cost pressures for raw materials and freight” during its third quarter, CEO Samuel Allen said.

The cost of production as a percentage of net sales increased to 77 percent in the most recent quarter compared to 75.2 percent in the second quarter.

Sources: Reuters, CNBC