Deere & Co. (NYSE: DE) reported second-quarter fiscal 2013 results before markets opened this morning. The farm and heavy equipment maker posted adjusted diluted earnings per share (EPS) of $2.76 on revenues of $10.91 billion. In the same period a year ago, the company reported adjusted EPS of $2.61 on revenues of $10.01 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $2.72 and $9.81 billion in revenues.
In its outlook statement, Deere projected an increase in equipment sales for the full year of 5% and a third-quarter increase of 3%. Net income for the year is expected to come in at $3.3 billion. Currency exchange effects are included in these estimates and knock off about 1% of annual growth.
This forecast is lower than the 6% growth Deere forecast at the end of its first quarter, and that will hit share prices this morning.
The consensus estimates call for EPS of $8.60 on revenues of $35.41 billion for the year and EPS of $2.20 on revenues of $9.35 billion for the third quarter.
The company’s CEO said:
Deere’s results are a reflection of positive conditions in the global farm economy, which continues to show impressive strength. … Deere’s near-term forecast is being tempered by lingering economic concerns in many parts of the world, which are restraining business confidence and growth. In addition, cool, wet weather in North America has delayed crop planting, slowed construction activity and hurt sales of turf-care equipment.
Sales in the company’s agriculture and turf division rose 12%, while construction and forestry equipment sales declined 6%. Sales figures followed volume: Deere shipped more tractors and lawnmowers and fewer loaders.
Deere expects equipment sales to rise 7% for the full year, compared with 2012. Sales in the United States and Canada are forecast to rise 5%, and Latin American sales are forecast to rise 15% to 20%. Sales in the former Soviet Union and in Europe are expected to be lower, and Asian sales are forecast to be flat.
Shares of Deere are trading down about 4% in the premarket this morning at $90.00. The 52-week range is $69.51 to $95.60. Thomson Reuters had a consensus analyst price target of around $98.70 before today’s report.