Deere & Co ups oulook
DEERE & Co posted higher quarterly earnings and sales that topped estimates, and raised its full-year profit outlook yesterday on rising global demand for farm equipment.
The US farm sector is booming on higher worldwide food demand and as biofuels help drive up crop production.
Companies like Deere are benefiting from record-high farm income that is spurring farmers to update their equipment.
The world’s largest farm equipment maker said fiscal second-quarter net income rose to $1.056bn (£627m), or $2.61 per share, from $904.3m, or $2.12 a share, a year ago. The results topped expectations of $2.53 per share. The firm also raised its forecast for net income to $3.35bn from $3.275bn for 2012.
Target raises forecasts
TARGET raised its annual forecast after posting a bigger-than-expected rise in quarterly profit yesterday despite spending more on opening stores in Canada, and having concerns about US shoppers’ ability to spend.
The discount chain expects economic uncertainty to continue for the rest of 2012, chairman and chief executive Gregg Steinhafel said.
Target earned $697m (£437m), or $1.04 per share, in the first quarter that ended in April, up from $689m, or 99 cents per share, a year earlier.
Target said it expects sales at stores open at least a year, or same-store sales, to rise about three per cent this quarter and three per cent or a little more for the full year. Some of the first-quarter strength came from warmer weather, which spurred clothing sales.
STAPLES, the office supply chain, reported lower-than-expected quarterly sales yesterday, hurt by weakness in markets such as Europe and Australia.
The company kept its 2012 outlook. Staples said it expects full-year sales to rise in the low single-digits, with earnings per share rising in the high single-digits from $1.37 last year.
First-quarter net income fell to $187.1m (£117m), or 27 cents per share, from $198.2m, or 28 cents per share, a year ago.
Total sales fell marginally to $6.1bn, missing analysts’ expectations of $6.18bn.
Sales at Staples’ international business, which makes up about 20 per cent of the company’s revenue, fell eight per cent, as same-store sales in Europe declined by six per cent, said the firm.