Deere pleased with second-quarter profits

News AED May 20, 2003
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Better-than-expected sales and continued cost cutting helped Deere & Co

Better-than-expected sales and continued cost cutting helped Deere & Co., Moline, Ill., post an 80% increase in its second-quarter earnings, beating Wall Street expectations.

The manufacturer earned $256.9 million for the three months ended April 30, up from $141.8 million.

Revenue for the quarter grew 10% to $4.4 billion, up from $3.99 billion last year.

Deere Chairman and Chief Executive Robert Lane said sales increased in the company's three major equipment lines--construction and forestry, commercial and consumer equipment. He said favorable currency exchange rates and the effects of cost-cutting efforts within the company also aided revenues.

For the first six months of the fiscal year Deere earned $324.9 million versus $103.6 million a year ago. Revenue rose to $7.19 billion from $6.51 billion a year ago.

The company trimmed its sales growth forecast for the full year, saying it expects sales will be up 6% to 8%, slightly below earlier estimates. Deere predicts earnings for the year will remain in a range of $500 million to $600 million.

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