Deere income up, but well short of expectations

John Deere equipment sit on the sales lot of Deems Farm Equipment Inc., in Lawrence, Kan., Wednesday, Aug. 15, 2007. Deere and Company said their third quarter profits were up 23 percent on strong sales outside the U.S. and Canada. (AP Photo/Orlin Wagner)
Orlin Wagner

(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.