Deere & Co (DE.N) on Friday raised its forecast for fiscal year 2023 after posting an increase in quarterly profit on robust demand for its high-horsepower tractors and an uptick in spending from construction customers.
Shares of the world’s largest farm equipment maker were up 3.7% before the bell.
The industrial bellwether, a barometer for the global economy, has maintained strong profit margins despite recession concerns. Demand from farmers has been strong, after elevated crop commodities last year left producers with income to purchase new equipment or upgrade their fleets.
Deere’s margins have remained high as it has been able to raise prices across its equipment divisions, offsetting rising shipping costs and tight supply chains.
The company expects net income of $8.75 billion to $9.25 billion for the year, higher than $8 billion to $8.5 billion estimated previously.
Net income attributable to the company rose to $1.96 billion, or $6.55 per share, for the first quarter ended Jan. 30 from $903 million, or $2.92 per share, a year earlier.
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