Deere & Co. said its fiscal fourth-quarter profit jumped 69% on strong sales of its agricultural and construction equipment despite a monthlong strike that began near the end of the period. The Moline, Illinois-based company said Wednesday that it earned $1.28 billion, or $4.12 per share, in the quarter that ended Nov. 1.
The results topped Wall Street expectations. More than 10,000 Deere workers were on strike from mid-October until last week when a contract that included 10% immediate raises and an $8,500 ratification bonus was approved. Deere officials estimate the new contract will increase its pretax costs by about $250 million to $300 million a year, but that won’t put a significant dent in its profits.
