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Earnings Calls: 
Deere & Company Second Quarter Earnings Call
Author: Rozalina Destanova
123jump.com
Last Update: 3:18 AM EDT May 16 2008


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Revenue increased 18% to $8.1 billion from $6.88 billion. Equipment sales were below the Deere''s forecast for the April quarter, coming in at 19% growth vs. an expected 23%. Operating profit from Deere''s construction and forestry equipment unit slipped 14% to $166 million as sales declined 7% to $1.35 billion. Deere reaffirmed projections calling for income of $2.2 billion for the full fiscal year on equipment sales growth of 20%.


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Robert Wertheimer (Morgan Stanley): If you had been able to forecast this extraordinary rise in steel, are you confident you could have gotten the pricing to offset the steel or was it just not able to guess which way the commodities are going or was it competitive pressure?

Marie Z. Ziegler: No, I would not say it was competitive pressure. When we do our pricing, we take a look at what is happening in the commodity markets but we are looking overall at a value picture in terms of the productivity, the features that we are delivering to our customers, and we are looking at things that are long-term sustainable for us and that makes sense in terms of the value proposition we are delivering to our customers.
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