Deere raises annual profit outlook on healthy equipment demand, strong order books
Deere & Co (DE.N) on Friday topped Wall Street profit expectations on strong sales of its tractors and precision agriculture equipment, and raised its net income forecast for the rest of the year as its order books remain robust.
Shares in the world’s largest farm equipment maker were up 3.4% in premarket trading after the company reported a 36% rise in second-quarter profit.
Deere expects 2023 net income in the range of $9.25 billion to $9.50 billion, higher than the $8.75 billion to $9.25 billion forecast earlier.
The industrial bellwether, a barometer for the global economy, has maintained resilient operating profit margins, despite global market volatility.
Farmers’ demand for new equipment and parts to repair aging machinery has bolstered Deere’s sales. Even though crop commodity prices continue to come down from last year’s peak, which spurred spending from growers to upgrade their fleets, executives have reiterated that order books are still robust.
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