Summary box: Deere 3Q net income up 15 percent

AP News
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Posted: Aug 17, 2011 1:55 PM
Summary box: Deere 3Q net income up 15 percent

PROFITABLE PERIOD: Agricultural equipment maker Deere & Co. posted a 15 percent increase in its third quarter profit Wednesday. The Moline, Ill., company generated $712.3 million net income, or $1.69 per share. The results beat Wall Street expectations.

CULTIVATING GROWTH: Deere expects its 2011 equipment sales to grow 25 percent, up from a previous forecast of 20 percent growth. The company boosted its full-year profit forecast to $2.7 billion from $2.65 billion.

COST CONCERNS: Deere said its costs increased 23 percent to $7.29 billion in the quarter from last year's $5.92 billion as raw materials and research and development grew more expensive. Analysts said those cost increases hurt margins and fed concerns about how profitable Deere will be in the future.