Deere does well as its farming conditions drive stronger sales
DEERE & Co reported a four per cent rise in quarterly earnings yesterday as higher prices and growing demand for farming and construction machinery offset the rising cost of production, materials and meeting emissions regulations.
The Illinois-based farm equipment maker posted fiscal first-quarter net income of $533m (£339m), or $1.30 per share, compared with $513.7m, or $1.20 per share, a year ago.
The results for the world’s largest agricultural equipment maker give investors a fresh look at how farmers and other equipment buyers fared in the opening months of 2012.
Last year, favourable farming conditions and growing global demand for food and other commodities drove sales of combines, tractors and other equipment.
Deere chief executive Sam Allen said that the company “has started 2012 on a strong note” as conditions have remained favourable.
As a result, Deere has increased its profit outlook for the year to $3.275bn, up from a previous target of $3.2bn.
Sales for the quarter increased 11 per cent to $6.77bn, beating analyst expectations of $6.5bn.