Deere & Co. says the new health care reform law will raise its fiscal 2010 expenses by approximately $150 million.
The farm equipment maker says most of the expenses will likely be incurred in the second quarter and that its 2010 earnings forecast of about $1.3 billion did not account for the expense hike.
Deere, based in Moline, Ill., is the second company this week to indicate that the new law will increase its costs. On Wednesday, heavy-equipment maker Caterpillar Inc. said the new law would create a $100 million drag on its first-quarter earnings.
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