Deere Shareholders Benefit as CEO Cuts Production Costs

Shares of Deere (DE) - Get Report got a roughly 3% boost before the opening bell after the agricultural-equipment manufacturer hiked its 2016 profit forecast after cutting production costs among its tractor businesses. The company also booked earnings of $1.2 billion for its fiscal third quarter, representing $3.91 a share, down from $4.67 year over year. Sales also dipped about 11% over the period to about $6.7 billion, with CEO Samuel Allen noting a pullback in demand across the international farming market. Allen said "All of Deere's businesses remained profitable with the Agriculture & Turf division reporting higher operating profit than last year. He also noted that "as in past quarters, our results benefited from the sound execution of our operating plans, the impact of a broad product portfolio, and our success keeping a tight rein on costs and assets."

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