John Deere revenues rise 15%
Deere & Co, the world's largest agricultural equipment maker, today reported a lower-than-expected quarterly profit, citing weak sales in China, India and other emerging markets.
The results sent the company's shares down 4.5 per cent to $76.50 in premarket trading.
Deere said it expected agricultural sales to be "down moderately" this year in India and China, and down 5 per cent to 10 per cent in South America due to a drought in Argentina.
"Although a strong quarter, we are not satisfied that sales fell short of our expectations due to weakening in certain international markets and short-term manufacturing inefficiencies resulting from the introduction of a record number of new products," chief executive officer Samuel Allen said in a statement.
For the third quarter ended July 31, the company posted net income of $788 million, or $1.98 per share, compared with $712.3 million, or $1.69 per share, a year earlier. Revenue rose 15 per cent to $9.59 billion.