Edition:
United Kingdom

Deere Sees Large Ag Sales To Be On The Lower End Of Prior Range - Conf Call


Friday, 17 May 2019 

May 17 (Reuters) - Deere & Co ::DEERE SAYS DESPITE HIGH PRODUCTION LEVELS FORECASTED FOR THE '19 AND '20 SEASON, CORN'S GLOBAL STOCK TO USE RATIO IS EXPECTED TO DECLINE IN RESPONSE TO RECORD CONSUMPTION OUTPACING SUPPLY - CONF CALL.DEERE SAYS WHEAT STOCK TO USE RATIO IS PROJECTED TO INCREASE IN '19 AND '20 DUE TO A SHARP PRODUCTION RECOVERY FROM LAST YEAR'S DROUGHT-STRICKEN REGIONS SUCH AS EUROPE AND AUSTRALIA.DEERE SAYS SOYBEAN STOCK TO USE RATIO IS FORECASTED TO REMAIN AT ELEVATED LEVELS TO THE '19 TO '20 MARKETING YEAR IN RESPONSE TO HIGHER-THAN-EXPECTED YIELDS IN THE U.S. AND THE ONGOING TRADE DISPUTE BETWEEN THE U.S. AND CHINA.DEERE SAYS 2019 PRINCIPAL CROP CASH RECEIPTS ARE ESTIMATED TO BE ROUGHLY $117 BILLION, A DECLINE OF 4% SINCE LAST QUARTER.DEERE ANTICIPATES LARGE AG INDUSTRY SALES TO BE ON THE LOWER END OF PRIOR RANGE, WITH CANADIAN DEMAND TURNING NEGATIVE DUE TO ADVERSE WEATHER.DEERE SAYS SMALL AG EQUIPMENT COMPACT TRACTORS CONTINUED TO SHOW A STRONG ORDER BOOK FOR 2019, DRIVEN BY A HEALTHY U.S. ECONOMY AND GDP GROWTH.DEERE SAYS REDUCING FULL YEAR OPERATING MARGIN FORECAST FOR AGRICULTURE AND TURF EQUIPMENT BUSINESS fROM 12% TO 11% TO REFLECT UNFAVORABLE MOVEMENTS IN VOLUME AND MIX, AS WELL AS THE IMPACT OF LOWER PRODUCTION SCHEDULES.DEERE SAYS COST AND EXPENSES AS PERCENT OF NET SALES EXPECTED TO BE ABOUT 76% IN FISCAL 2019 VERSUS PRIOR EXPECTATION OF ABOUT 75%.DEERE SAYS IDENTIFYING OPPORTUNITIES TO MANAGE COSTS.