Deere recently reported its second consecutive quarter of record profits. Demand for farming and construction equipment drove earnings higher. CEO John May said the company closed the first half of its year “on a highly encouraging note.”
The sale of farm and turf equipment climbed 8 percent in the second quarter, Deere said, and the company expects sales for the year to climb by up to 15 percent.
“Industry sales of agricultural equipment in the U.S. and Canada are forecast to rise 5 to 10 percent driven by gains in larger models,” the company’s report said.
Overall earnings for the second quarter nearly doubled last year’s Q2 profits.
With earnings for the first half of the year approaching the lower end of the company’s initial projection for the full fiscal year, Deere said it would push its annual income forecast higher. It initially called for between $3.6 and $4 billion this year. The revised forecast is $5.7 billion.
Source: Des Moines Register