The largest maker of agricultural equipment, John Deere & Co. reported its fourth quarter earnings on Tuesday that missed estimates by analysts after the company saw sales outside Canada and the U.S. decline.
Profit jumped to over $1.75 per share during the three months that ended October 31. That was up from profits of a year ago of $1.62 per share. The company, based in Moline, Illinois was expected to have a profit of up to $1.88 per share.
Net Income for Deere will be nearly $3.2 billion during the year up through the end of October 2013, said the company. The average of analysts on Wall Street was $3.26 billion.
Deere announced that its farm equipment sales for Europe would be unchanged to 5% lower for the 2013 fiscal year. In Asia, Deere said it would be little changed because of softer conditions in the economy in both China and India. That could undermine the efforts of the company to expand market share outside Canada and the U.S. to 50% before 2018.
Deere, nevertheless remains in position to complete its plans for growth and capitalize on long term trends that look to be positive, even though current global fiscal and economic concerns have warranted continued caution, said Sam Allen the company’s CEO and Chairman.
The U.S. remains the largest market for Deere and inventory for new farm equipment was up during October to 29%. That level is the highest in over five years. One analyst said the inventory was still very high and it will not go away quickly.
On Tuesday, Deere was down to $85.99, but shares have risen by 11% since the start of 2012.