Deere Outperforms in Latest Quarter, but Maintains Lower Outlook -- Update

By Amber Burton

Deere & Co. performed better than expected in the latest quarter, but the tractor and construction machinery maker maintained its sluggish outlook for the year.

First-quarter net sales were $6.53 billion, down 6% from a year earlier, but ahead of the $6.22 billion analysts polled by FactSet had projected. Net income for the quarter was $517 million, or $1.63 a share, compared with $498 million, or $1.54 a share. Analysts expected $1.27 a share.

Shares rose 7.3% in premarket trading.

"John Deere's first-quarter performance reflected early signs of stabilization in the U.S. farm sector," said John C. May, chief executive officer.

Mr. May added that farmer confidence, while subdued, has improved in part because of hopes of easing trade tensions. However, the construction sector has slowed.

Net sales in its agriculture-and-turf business fell 4% in the latest quarter compared with a year earlier, while construction-and-forestry sales fell 10%.

The company maintained its expectations for 2020 that call for sales in the agriculture-and-turf segment to decline 5% to 10% for the full year, and for those of the construction-and-forestry segment to fall 10% to 15%.

(END) Dow Jones Newswires

February 21, 2020 07:46 ET (12:46 GMT)

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