Updated at 8:02 am EST
Deere & Co. (From) – Get Deere & Company report Friday posted better-than-expected second-quarter earnings, and boosted its full-year profit forecast as demand for farm equipment surpassed inflation and supply-chain pressures that were disrupting delivery schedules.
Deere said the group’s financial second-quarter earnings for the three months ended May 1 came in at 8 6.81 per share, up 19.9% from the same period last year and 10 cents ahead of the road consensus forecast. The group’s global sales, Deer said, rose 11% year-on-year to $ 13.37 billion, briefly topping analysts’ forecasts of $ 13.36 billion.
Looking at the end of FY 2022, Deer said it saw net income between $ 7 billion and $ 7.4 billion, up from its previous forecast of $ 6.7 billion and $ 7.1 billion, with strong demand for farm and construction equipment, increased infrastructure costs and favorable crop prices.
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“The second-quarter performance of DIR reflects a continuum of strong demand, although we are facing supply-chain pressures that affect production levels and distribution schedules,” said CEO John May. “Deere’s staff, suppliers and dealers are working hard to meet this challenge. We are proud of their tremendous efforts to deliver products to our customers as quickly as possible in challenging situations.”
“Looking ahead, we believe that demand for farm equipment will benefit from positive fundamentals despite availability concerns and inflationary pressures affecting our customers’ input costs,” May added. “The company’s smart industrial strategy and recently announced leap ambitions focus on helping customers manage high costs and increasingly scarce inputs through the use of our integrated technology.”
Deere shares, which hit a record high of $ 446.76 in March, were marked 4.8% lower in pre-market trading shortly after the earnings release, indicating an initial bell price of $ 347.50 each.