Deere Improves 2018 Outlook

Deere last week boosted its sales outlook for fiscal 2018, citing strengthening conditions in agricultural and construction markets. It also cut its net income estimate for the year.

The company expects full-year sales to be up 29 percent from a year ago, a 7-
percentage-point increase from its previous estimate. Deere said the acquisition of Germany’s Wirtgen Group last year and a favorable currency effect contributed to the increase.

Equipment sales rose 27 percent year-on-year in the first quarter. The company said sales in the quarter were weighed down by supply chain and logistical delays in shipping products to their dealers.

The company expects U.S. net farm cash income to drop by 5 percent this year from 2017, which improves upon earlier forecasts.

Deere also expects higher demand for large agricultural equipment to lift industry sales in the United States and Canada by 10 percent.

The company cut its net income estimate for the year from $2.6 billion to $2.1 billion because of U.S. tax reform-related adjustments.

Source: Reuters