Edition:
United States

Deere & Co Says Expect U.S. Tariffs On Chinese Imports To Cost Company $100 Million In 2019 - Conf Call


Friday, 15 Feb 2019 11:00am EST 

Feb 15 (Reuters) - Deere & Co ::DEERE & CO SAYS STILL EXPERIENCING POCKETS OF TIGHTNESS, REQUIRING ELEVATED LEVELS OF PREMIUM FREIGHT EXPENSES; ANTICIPATE THESE ISSUES TO EXTEND INTO Q3 - CONF CALL.DEERE & CO SAYS IN AGRICULTURAL MARKETS, REPLACEMENT DEMAND CONTINUE TO DRIVE SALES ACTIVITY, ALBEIT AT A SLOWER PACE THROUGH CO'S EARLY ORDER PROGRAMS.DEERE SAYS SOYBEANS STOCKS-TO-USE RATIO IS FORECASTED TO BUILD IN RESPONSE TO HIGHER-THAN-EXPECTED YIELDS IN U.S. AND ONGOING TRADE DISPUTE BETWEEN U.S. AND CHINA.DEERE SAYS 2019 PRINCIPAL CROP CASH RECEIPTS ARE ESTIMATED TO BE ABOUT $124 BILLION, SLIGHTLY HIGHER THAN 2018 AND THE HIGHEST SINCE 2014.DEERE SAYS PRICES FOR 3 OF THE 4 MAJOR CROPS ARE EXPECTED TO BE HIGHER IN THE '18, '19 MARKETING YEAR THAN IN THE PREVIOUS YEAR.DEERE SAYS CORN, WHEAT AND COTTON PRICES HAVE HELPED OFFSET SOFTNESS IN THE SOYBEAN MARKET.DEERE SAYS EVEN WITH IMPROVED ECONOMICS ON ACCOUNT OF USDA AID, U.S. FARMER SENTIMENT REMAINS FLUID, CONTINUES TO ERODE LONGER TRADE UNCERTAINTY PERSISTS.DEERE SAYS 2019 COMBINE EARLY ORDER PROGRAM RESULTED IN ORDERS DOWN SINGLE DIGITS FROM 2018.DEERE SAYS ANTICIPATE A RESUMED RECOVERY IN EQUIPMENT VOLUMES AS NEW TRADE ROUTES MATURE OR U.S.- CHINA TRADE CONTINGENCIES ABATE.DEERE SAYS IN SMALL AG SEGMENT, COMPACT TRACTORS SHOW A STRONG ORDER BOOK FOR 2019, DRIVEN BY A HEALTHY U.S. ECONOMY AND GDP GROWTH.