Deere & Co. quarterly profits surge
Deere & Co. said last Wednesday its fiscal second-quarter profit soared 65 percent because of strong demand for its agricultural equipment, especially in the United States, Canada and Brazil.
The company also said it plans to invest $80 million in a new agricultural equipment manufacturing plant in northeast China to help meet increased demand in the region. It would be
Deere’s seventh manufacturing plant in China, of which two are joint ventures.
The earnings beat Wall Street expectations, and it raised its forecast for 2011 revenue.
The Moline, IL, company said its net income rose to $904.3 million, or $2.12 per share, during the quarter ended April 30. That’s up from last year’s $547.5 million, or $1.28 a share, weighed down by a charge related to U.S. health care reform.
Revenue grew 25 percent to $8.9 billion from last year’s $7.1 billion. Analysts expected $8.12 billion.
The company upped its forecast for fiscal 2011 revenue. Deere now predicts sales will rise 21 to 23 percent.
Deere said its third quarter sales should be up about 20 percent over last year. — WLJ