Deere income up, but well short of expectations

(AP) NEW YORK - Deere (DE) says its third-quarter net income rose 11 percent but fell well short of expectations, hit hard by a weakening global economy and prolonged drought in the U.S.

The Moline, Ill., company, the world's largest producer of agricultural equipment, said Wednesday it earned $788 million, or $1.98 per share for the quarter ended July 31, compared with $712.3 million, or $1.69 per share for the same period last year.

Revenue rose 15 percent to $9.59 billion.

But Wall Street was looking for earnings of $2.31 per share on revenue of $9.61 billion, and Deere's stock tumbled 5 percent.

Besides international weakness and shrinking crop yields, new product launches also hurt efficiency.

It projects net income of $3.1 billion for the year, compared with analyst expectations of about $3.3 billion.


Market Data

Watch CBSN Live

Watch CBS News anytime, anywhere with the new 24/7 digital news network. Stream CBSN live or on demand for FREE on your TV, computer, tablet, or smartphone.

Watch Now

Market News

Stock Watchlist

New Android App

For your Android phone and tablet, download the FREE redesigned app, featuring CBSN, live 24/7 news.

The all new
CBS News App for Android® for iPad® for iPhone®
Fully redesigned. Featuring CBSN, 24/7 live news. Get the App