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Deere Sees Lower 2nd-Quarter Earnings

March 22, 2001|Reuters

Heavy-equipment maker Deere & Co. said it will trim production, leading to lower fiscal second-quarter earnings, because the slowing economy and bad weather have hurt orders. The company said its cuts affect construction, commercial and consumer equipment as well as large farm tractors. The company did not provide a specific earnings forecast for its second quarter ending April 30, but it said results are likely to be lower than last year. Analysts surveyed by First Call/Thomson Financial on average had expected earnings of 96 cents a share, up from 87 cents a year earlier. The company also said that reaching its goal of higher earnings for the fiscal year will be "challenging." The current First Call consensus estimate is $2.36 a share, up from $2.06 for the previous year. Deere shares fell $2.16 to close at $38.17 on the NYSE. The news also pressured the stock of Caterpillar Inc., another construction equipment maker, whose shares fell $1.69 to close at $42.18, also on the Big Board.

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