Deere sees a sharp increase for raw material costs in ‘08

NEW YORK (MarketWatch) — Deere Co. raised its full-year forecast for raw material costs on Wednesday to the range of $400 million to $500 million. With just $110 million spent year to date, Chief Financial Officer Michael Mack noted that soaring commodity expenses will really hit in the second half of the year. “Raw material costs, especially for vital commodities like steel, are racing ahead; well beyond what we had anticipated and we set prices for model year 2008,” he said. Deere has implemented a number of price increases to offset the higher costs, but the effort won’t have an impact before next year, Mack said. Shares of Deere fell 8.4% to $81.87.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Original post by Forextvblog

This entry was posted on Wednesday, May 14th, 2008 at 11:02 am and is filed under Daily Forex Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.