Deere & Co., the world’s largest farm equipment maker, Tuesday said quarterly earnings jumped 150 percent and that it sees strengthening in key markets helping to boost results for the year.
Deere, known for its green-and-yellow tractors, reported net income of $170.8 million, or 68 cents a share, for its first quarter ended Jan. 31, compared with net income of $68.0 million, or 28 cents a share, a year earlier.
Analysts on average expected Deere, based in Moline, Illinois, to report earnings of 52 cents per share, according to Reuters Research, a unit of Reuters Group Plc.
Net sales and revenue rose to $3.48 billion in the quarter from $2.79 billion a year earlier for Deere, which also makes construction and forestry equipment, and lawn care products. Performance improved in the agriculture and the construction and forestry divisions, Deere said.
Deere and other farm equipment makers struggled through a five-year industry downturn because of weak commodity prices which made farmers reluctant to buy new equipment. The outlook began to brighten last year.
Deere said it expects second-quarter net income of $400 million to $450 million and net income for 2004 of $900 million to $1 billion. Excluding currency and price impacts, sales are expected to rise 23 percent to 25 percent in the second quarter and 12 to 14 percent for the year, Deere said.
