Deere Posts Higher Earnings, but Warns of Challenges

deere tractor farming
Danny Johnston/AP

Deere reported higher-than-expected quarterly results on Wednesday and forecast a record profit for the full year, but it said it was cautious because of "global financial pressures as well as adverse weather patterns."

Shares of the Moline, Ill.-based maker of tractors, harvesters and other agricultural equipment fell 4.6 percent to $89.50 in trading before the market opened.

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Deere & Co. (DE) said it earned $1.08 billion, or $2.76 a share, in the second quarter ended April 30, up from $1.06 billion, or $2.61 a share, a year earlier.

Sales rose 9 percent to $10.91 billion.

Analysts on average expected Deere, the world's largest farm equipment manufacturer, to report a profit of $2.72 a share on sales of $9.85 billion, according to Thomson Reuters I/B/E/S.

In a statement, Chief Executive Officer Samuel Allen said the results reflected a strong global farm economy.

But Allen added, "Deere's near-term forecast is being tempered by lingering economic concerns in many parts of the world, which are restraining business confidence and growth."

Allen also said cool, wet weather in North America had delayed crop planting, slowed construction activity and hurt Deere's sales of turf-care equipment.