UPDATE 4-Deere shares jump on quarterly results, cost cuts
(Adds share move, CFO comments from conference call, details)
By Meredith Davis
Aug 19 (Reuters) - Deere & Co shares rose nearly 12 percent on Friday after the world's largest farm equipment manufacturer posted a much smaller-than-expected drop in quarterly profit and highlighted its cost-cutting measures.
The company also raised its fiscal-year outlook as cost controls helped it weather a global agricultural recession and difficult market for its construction machinery.
Deere has been working on reducing selling, general and administrative expenses and material costs, Chief Financial Officer Raj Kalathur said during a conference call with analysts.
"We have devoted more of our R&D resources to focus on cost reductions in the last two years," Kalathur said, "and we have increased our focus on efficiency improvement and structural cost-reduction activities."
Shares of Deere were up 11.6 percent at $85.84 in afternoon trading.
The company said it expected production hours to be down 60 percent this quarter at its East Moline, Illinois, combine factory and planned to reduce them by 20 percent at its Waterloo, Iowa, tractor plant.
Deere increased its fiscal-year earnings outlook to $1.35 billion from $1.2 billion. However, it said it expected an equipment sales decline of 10 percent for the year, steeper than the 9 percent drop it had forecast in May. Continuación...