Deutsche Bank Shares Rise After Shakeup

ENLARGE Deutsche Bank managers held meetings and conference calls with employees in London, New York and Frankfurt, above. Photo: Martin Leissl/Bloomberg News By Jenny Strasburg and Jenny Strasburg The Wall Street Journal CANCEL Biography @jennystrasburg Google+ [email protected] Juliet Samuel Juliet Samuel The Wall Street Journal CANCEL Biography @CitySamuel [email protected] Oct. 19, 2015 1:46 p.m. ET 0 COMMENTS Deutsche Bank AG DB 2.48 % employees and investors on Monday positively graded the lender’s management and organizational overhaul, saying they welcomed clarity on how businesses will be judged going forward. They also said next week will be crucial to understanding Deutsche Bank’s

Deere Lifts Profit Outlook As Profit Beats Views

Deere was helped by higher prices and lower production costs during the quarter. ENLARGE
Deere was helped by higher prices and lower production costs during the quarter. Photo: Reuters

Deere & Co. said profit and sales fell again in its third quarter as global markets for farm and construction equipment remain weak.

Still, the company boosted its full-year earnings forecast after posting a surprise increase in per-share profit.

Deere was helped by higher prices and lower production costs during the quarter. Overall costs and expenses fell 12% in the period, and the company’s gross margin expanded to 23.3% from 21.7%.

Deere, the world’s largest seller of farm tractors and harvesting combines, has been struggling through a prolonged slump in U.S. farm machinery demand, crimped by lower prices for corn, soybeans and other commodities that has lowered farmers incomes and forced them to pull back on equipment spending. Also, the strong U.S. dollar has made its machinery more expensive abroad, and cutbacks in investment spending by energy-related companies have dented the company’s results.

Sales of agricultural and turf equipment slipped 11% to $ 4.7 billion in the quarter. Its much smaller construction and forestry segment posted a 24% sales decline, to $ 1.16 billion.

In all, Deere reported a profit of $ 488.8 million, down from $ 511.6 million a year earlier. On a per-share basis, earnings were $ 1.55, up from $ 1.53 because of a lower number of shares outstanding. Analysts expected 94 cents in per-share profit, according to Thomson Reuters. Net sales fell 14% to $ 5.86 billion.

The company now expects to earn $ 1.35 billion this year, up from its May forecast of $ 1.2 billion.

Write to Joshua Jamerson at [email protected]


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