Deere & Company (NYSE:DE), which makes farm and construction equipment, on Wednesday missed analyst expectations though it reported a 2.7 percent rise in net income for the fourth quarter on higher prices.
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Deere said its net income rose 2.7 percent to $687.6 million, or $1.75 per share for the quarter ended Oct. 31.
Revenue rose 14 percent to $9.79 billion. Analysts polled had been expecting earnings of $1.88 per share. A year ago, Deere's net income was $669.6 million, or $1.62 per share.
Though its revenues got a boost of 4 percent from a rise in equipment prices, much of it was offset by adverse currency movements and that impacted its revenues by 3 percent.
Equipment sales rose to $9.05 billion, above analyst forecasts of $8.93 billion. Sales were strong in the U.S. and Canada, rising 26 percent for the quarter. Elsewhere, sales fell 2 percent. Sales of agriculture and turf equipment rose 16 percent, while construction and forestry equipment sales rose 7 percent.
The company has forecast that equipment sales would rise about 5 percent for the fiscal year that began this month, and would increase 10 percent in the first quarter. It expects full-year 2013 net income of about $3.2 billion. That's a little more than analysts are expecting.
Deere is in a good position to carry out its growth plans, but "present global economic and fiscal concerns warrant continued caution," Chairman and CEO Samuel R. Allen said.
Deere shares fell $3.16, or 3.67 percent, to $82.83 in Wednesday’s session.