US Markets
DE

Deere raises profit forecast as equipment demand soars

Credit: REUTERS/Vasily Fedosenko

Deere & Co raised its annual profit forecast on Friday boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the Russia's invasion of Ukraine fueled crop prices and spurred demand.

Adds details from the results, background

May 20 (Reuters) - Deere & Co DE.N raised its annual profit forecast on Friday boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the Russia's invasion of Ukraine fueled crop prices and spurred demand.

A tight supply of grains elevated prices, supporting healthy farm income and encouraged farmers to upgrade their fleet. Demand will likely outpace crop supplies until at least 2024, grains giant Archer-Daniels-Midland CoADM.N said last month.

Shares of the world's largest farm equipment maker surged to record highs in March as investors bet on stronger demand.

Including special items, the company forecast fiscal 2022 net income between $7.0 billion and $7.4 billion, up from a prior estimate of $6.7 billion and $7.1 billion.

The Moline, Illinois-based firm's net income was $2.09 billion or $6.81 per share for the quarter ended May 1, compared $1.79 billion or $5.68 per share a year earlier.

Total net sales and revenue rose about 11% to $13.37 billion from $12.06 billion.

(Reporting by Aishwarya Nair in Bengaluru; Editing by Krishna Chandra Eluri)

((Aishwarya.Nair@thomsonreuters.com; +91-8067494421;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

DE ADM

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More