Deere’s Profit Plunges 94% in 4th Quarter

Deere & Co. said profit from operations in its fiscal fourth quarter plunged 94% to $10.5 million, or 4 cents a share, as persistently low crop prices kept farmers from buying tractors and combines. Revenue fell 13% to $2.79 billion. Moline, Ill.-based Deere was expected to have a loss of 6 cents, the average estimate of analysts surveyed by First Call Corp. Deere said it expects total sales to rise 10% in fiscal 2000, although sales of agricultural equipment likely will decline by 5% to 10%. Sales of lawn mowers and other consumer products are expected to rise in 2000 if weather patterns are normal, and new products are expected to give a boost to sales of construction equipment, although demand could be curbed by higher interest rates, it said. About 60% of Deere’s sales come from agricultural equipment, with the remainder divided between construction and consumer products. Deere’s shares rose $2.25 to close at $41.25 on the NYSE.