Deere reported weaker-than-expected earnings on Friday as lift costs take a bite out of the tractor company’s bottom line.
Deere strutted adjusted earnings per share of $2.59 for its fiscal third quarter. Analysts at Reuters expected a profit of $2.75 per dividend.
CEO Samuel Allen said the company “continued to face cost compressions for raw materials and freight” during the quarter, “which are being addressed totally a combination of cost management and pricing actions.” The cost of production as a part of net sales increased to 77 percent from 75.2 percent in the moment quarter.
The rise in costs comes as the Trump administration engages key financial partners in a trade spat. The U.S. has already slapped tariffs on billions of dollars usefulness in imports from China, Europe and Mexico.
China, the European Trust and Mexico have all retaliated with levies on U.S. goods.
Deere’s standard fell as much as 3.7 percent before recovering to close 2.4 percent drunk.
Deere also reported better-than-expected revenue for the quarter, however. Sales totaled $9.286 billion versus an appraisal of $9.211 billion. The company’s revenue got a boost from strong mark-downs in its agricultural and turf business, which came in at $6.29 billion.
The cast’s net income also rose 42 percent on a year-over-year basis to $910 million from $642 million, because ofs in part to lower corporate taxes.
—Reuters contributed to this suss out.