Deere & Company (NYSE:DE), the world’s top maker of farm tractors, beat Wall Street expectations for earnings in the three months ended Jan. 31 and raised its full-year outlook as farmers prepared for a major increase in soybean and corn planting.
The Moline, Ill.-based manufacturer’s fiscal first-quarter earnings climbed to $649.7 million, or $1.65 per share, from $532.9 million, or $1.30 per share, in the year-earlier quarter.
Analysts polled by Thomson Reuters expected, on average, earnings per share of $1.40.
Deere also raised its outlook for net income in the current fiscal year to $3.3 billion from $3.2 billion because of an anticipated 6 percent increase in equipment sales. Wall Street had been expecting $3.26 billion.
U.S. grain farmers have been spending heavily recently on equipment to prepare for a major increase in planting soybeans and corn as the nation recovers from a major drought in the Midwest.
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“We’re confident our investment in new products and additional capacity will help Deere fully capitalize on the world’s growing need for food, shelter and infrastructure in the years ahead,” CEO Samuel R. Allen said.
“However, the near-term outlook is being tempered by uncertainties over fiscal, economic and trade issues that are undermining business confidence and restraining growth.”