MOLINE, Illinois- Deere and Company's net sales rose by 16% in the first quarter report it released Friday, February 15, but it was still less than expected.
"Although Deere has continued to make solid progress on a number of fronts and reported higher earnings for the quarter, our results were hurt by higher costs for raw materials and logistics as well by customer concerns over tariffs and trade policies," said Samuel R. Allen, chairman and chief executive officer.
Deere and Company's net income for the first quarter of this year was $498.5 million while its net income for 2018 was a net loss of $535.1 million. Regardless, Allen said the concern over tariffs weighed on the market sentiment and caused farmers to make become more cautious about buying.
"At the same time, sales of John Deere construction and forestry machinery have continued at a strong pace. We believe cost pressures should abate as the year progresses and are hopeful we will soon have more clarity around trade issues. As a result, we remain cautiously optimistic about our prospects for the year ahead."
Our investment advisor Mark Grywacheski dug into the numbers Monday, February 18 and explain the strengths and challenges of the company. He also discussed retail sales data and explain why the numbers from November to December of 2018, fell by 1.2%.
Your Money with Mark airs between 5 and 5:30 a.m. every Monday on Good Morning Quad Cities. To live stream our newscast, click here.