CHICAGO (Reuters) - U.S. tractor maker Deere & Co on Friday reported a third-quarter profit that missed analysts' estimates on higher raw material and freight costs, sending shares down 4.4 percent in premarket trading.
The Moline, Illinois-based company did not change its full-year earnings forecast, banking on replacement demand for large agricultural equipment.
Adjusted profit in the latest quarter totaled $2.59 per share, lower than the average analyst estimate of $2.75. The cost of production as a percentage of net sales increased to 77 percent from 75.2 percent in the second quarter.
"...We have continued to face cost pressures for raw materials and freight, which are being addressed through a combination of cost management and pricing actions," said Chief Executive Officer Samuel Allen.
Total equipment sales jumped 36 percent from a year ago to $9.3 billion on strong demand for construction and forestry machines. Construction and forestry sales doubled in the quarter ended July 29 from a year ago.
At its agriculture & turf division, sales grew 18 percent, helped by higher shipment volumes and lower warranty expenses.
Net income attributable to the company rose to $910.3 million, or $2.78 per share, from $641.8 million, or $1.97, a year earlier.
Shares fell to $131.35 in premarket trading from a close of $137.35 on Thursday.
(Reporting by Rajesh Kumar Singh; Editing by Andrew Roche and Jeffrey Benkoe)
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