Deere & Co. reported its first quarterly loss since 2002, as sales of tractors, combines and other farm and lawn equipment fell 28 percent.
The Moline, Ill.-based company also forecast that 2010 profit would be weaker than analysts expected as the recession weakens demand from farmers in North America and Europe.
But as with other big manufacturers whose health is tied to the global economy, Deere investors are betting the worst of the recession is over, and a recovery next year will begin to boost demand for farm and construction equipment.
Deere expects 2010 sales to fell about 1 percent, and the company continues to "keep a tight rein on costs," said Samuel Allen, who took over as CEO in August. "We remain extremely confident about the company's future."
Deere shares, which are up nearly 40 percent this year, rose $1.37 to $53.66 in morning trading.
The company employs 710 people in the Triangle, including 434 at a Fuquay-Varina factory that makes lawn mowers and other turf equipment, and 276 at offices in Cary.
The fourth-quarter loss was $222.8 million, compared with a profit during the same period last year of $345 million. Sales fell to $5.3 billion.
Excluding one-time charges, Deere reported a profit of 23 cents a share. The company is benefitting from falling prices for raw materials as the recession eases demand.
