Deere Quarterly Profit Far Lower That Estimate

Heavy-equipment maker Deere & Co. said earnings fell 37% in its fiscal second quarter to $127.8 million, or 54 cents a share, as the slow U.S. economy and wet spring weather hurt sales. The results were far lower than an already reduced estimate of 66 cents, according to Thomson Financial. Sales were flat at $3.8 billion.

The Moline, Ill.-based company also said it expects its fiscal third quarter to be tough, with unit sales likely down about 11% from a year ago and operating margins under significant pressure. Its 2001 results will be lower as well, Deere said. Deere shares dropped $2.49 to close at $38.52 on the NYSE.