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BUSINESS A25
Saturday 20 February 2016
Deere’s 1Q results top estimates, but cuts full-year outlook
MOLINE, Ill. (AP) — Deere Falling commodity prices clined to $5.17 billion from Revenue for the Moline, was for equipment sales to
cut its full-year earnings have made farmers less $5.82 billion. For the period Illinois-based company to- fall 7 percent and earnings
forecast Friday even as likely to buy new equip- ended Jan. 31, Deere & taled $5.53 billion. Sales for to come in at about $1.4
the agricultural equipment ment. Declining oil prices Co. earned $254.4 million, the agriculture and turf unit billion. The company pre-
maker beat Wall Street’s have also affected its con- or 80 cents per share. That dropped 12 percent in the dicts equipment sales will
expectations for the first struction equipment sales. is down 34 percent from its quarter. Construction and drop approximately 8 per-
quarter. It has been deal- In November the company earnings of $386.8 million, forestry division sales fell cent in the second quarter.
ing with weak sales of farm announced that it was lay- or $1.12 per share, a year 23 percent. For fiscal 2016, Deere shares fell $2.86, or
and construction equip- ing off about 220 workers. earlier. Deere now anticipates 3.6 percent, to $77.47 in
ment. But Deere has been effec- This beat the 71 cents per equipment sales declining afternoon trading Friday.
Its shares fell more than 3 tively managing its costs. share that analysts sur- about 10 percent and earn- Its shares are down almost
percent in afternoon trad- In the first quarter, total veyed by Zacks Investment ings of approximately $1.3 15 percent over the past
ing. costs and expenses de- Research expected. billion. Its prior guidance year.q
Citibank to drop consumer banks in struggling South America
J. GOODMAN interest rate. People walk by with umbrellas in front of Citibank in Buenos Aires, Argentina, Friday, Feb. 19,
Associated Press Although much smaller,
BOGOTA, Colombia (AP) — its business in Argentina is 2016. Citibank says they will sell direct banking operations they had for a century in Argentina,
Citibank is planning to sell storied.
the consumer banking op- Citibank in 1914 opened Brazil and Colombia at a time when the three largest economies in South America are suffering
erations it has operated for its first foreign branch in
a century in Argentina, Bra- Argentina, when it rivaled setbacks.
zil and Colombia as South Canada as an emerging
America’s three biggest agricultural powerhouse, (AP Photo/Natacha Pisarenko)
economies suffer a major and lumbered through
downturn. decades of dictatorship, a top priority. rate clients in the three have been culled from
The New York-based bank hyperinflation and pot-
said Friday in a state- banging protesters outside Next month, President countries. their operations in South
ment that its decision was its downtown headquarters
prompted by a desire to during the country’s 2001 Barack Obama will be- The bank in 2014 dropped America, including former
allocate resources where it financial crisis when it was come the first U.S. president consumer banking in 11 chairmen John Reed, who
can generate the best re- ordered to seize depositors’ to visit Buenos Aires since other Latin America na- was raised in Argentina and
turns. accounts and make emer-
The decision to eliminate its gency loans to the govern- Bill Clinton. tions. Brazil to expat parents and
services affects depositors ment.
in more than 50 cities in the Argentina’s current prob- Citibank said it would still Several of Citibank’s top oversaw the global bank in
three countries. lems, including inflation
The slowing of China’s that’s forecast to surge to continue servicing corpo- executives over the years the 1980s and 1990s.q
economy has plunged all 30 percent this year amid
three into an economic several years of stagnant
down spiral with Brazil, the growth, seem far more
region’s biggest economy, mundane by comparison.
struggling to emerge from And after years of fighting
its deepest recession since over defaulted debt with
the 1930s. Foreign banks leftist former President Cris-
have taken a hit in dollar tina Fernandez, the doors
terms as the country’s cur- seemed wide open under
rency has collapsed al- her successor, Mauricio
though profits overall con- Macri, a former business-
tinue to rise as a result of man who has made at-
some of the world’s highest tracting foreign investment
Singapore Airshow announces $12B of deals from trade days
ANNABELLE LIANG ues. There were 24 undis- a fall in oil prices spurred sizes (over the next two are expected by Airbus to
Associated Press closed deals in 2014. airlines to keep their older years), with most new Asia- grow by 5.6 percent annu-
SINGAPORE (AP) — Orga- The 2014 show generated less fuel-efficient planes for Pacific airline orders likely ally, with China forecast to
nizers of the Singapore Air- $32 billion of sales. Organiz- longer. to come in sizes of dozens post double digit growth.
show said $12.3 billion in ers released this year’s total “Many Asian airlines placed of aircraft rather than the On Friday, Boeing an-
airplane deals were signed which covers commercial, large orders between 2011 mammoth orders seen dur- nounced an order for four
at the event this week, a private and defense deals and 2014, and now have a ing the 2012 and 2014 Sin- 737 MAX 8 airplanes, val-
sharp drop from the last after the three-day trade long pipeline of aircraft de- gapore Airshows.” ued at $440 million at list
show in 2014. period ended Friday. liveries to absorb over the But Biswas said the mood prices from Air Niugini. On
Leck Chet Lam, managing Modest airplane orders next four years,” said Rajiv in the commercial aviation Wednesday, the manufac-
director of Experia Events, for Boeing and Airbus an- Biswas, Asia-Pacific Chief industry remains buoyant, turer announced a deal for
said Friday that this year’s nounced earlier in the week Economist at IHS Global In- with growth in air passen- 12 of its 737 jets with a pri-
figure was comprised of hinted at a lull in demand, sight. ger numbers expected to vately-owned Chinese car-
10 deals, with another 40 as overflowing order books “Future new orders are ex- remain robust. rier Okay Airways, valued
made at undisclosed val- at the manufacturers and pected to come in smaller Passenger numbers in Asia at $1.3 billion.q
