Salem Radio Network News Monday, September 26, 2022

Business

Deere shares drop after earnings miss, changes full year outlook

By Bianca Flowers and Aishwarya Nair

(Reuters) -Deere & Co missed Wall Street earnings estimates on Friday as the world’s largest heavy equipment maker continues to grapple with parts shortages stemming from supply chain snarls, sending its shares down some 7% in premarket trade.

Higher raw materials and freight costs amid supply and logistics bottlenecks have plagued production for industrial manufacturers, putting pressure on margins and curbing output.

“Our results reflected higher costs and production inefficiencies driven by the difficult supply-chain situation,” said John May, chief executive of the maker of industrial goods such as agricultural machinery and diesel engines.

The Moline-based company revised its full-year net income guidance to between $7.0 billion and $7.2 billion, compared with its previous outlook of $7.0 billion to $7.4 billion.

Deere reported sales of $13.0 billion, beating analysts projections of $12.78 billion. The manufacturer recorded net income of $1.88 billion, or $6.16 per share, below analysts estimates of $6.69 per share for the quarter ended July 31, according to Refinitiv IBES data.

Total net sales and revenue rose about 22% to $14.10 billion.

(Reporting by Aishwarya Nair in Bengaluru and Bianca Flowers in Chicago; Editing by Krishna Chandra Eluri and David Holmes)

Previous
Next

Editorial Cartoons

View More »

Michael Ramirez
Fri, Sep 23, 2022

X CLOSE