Deere Third-Quarter Net Profit Rises 23% on Overseas Sales
Deere said on Wednesday its net earnings in the latest quarter rose by a better-than-expected 23%, driven by strong overseas sales of tractors and other agricultural equipment.
The world's largest maker of agricultural equipment reported a fiscal third-quarter profit of $537.2 million, or $2.37 a share, up from $436.7 million, or $1.85 a share, last year.
Net revenue rose 6% to $6.634 billion, lifted by a 30% rise in sales outside the United States and Canada, where sales actually dipped 5% despite the ethanol-fueled ramp up in corn production.
Analysts on average expected the Moline, Illinois-based company to report earnings of $1.99 a share on sales of $6.063 billion, according to Reuters Estimates.
The results were well above expectations and reflected, in part, Deere's ability to charge higher prices for its tractors, combines and other equipment, the company said.
Looking forward, the company expects worldwide equipment sales to rise 16% in the fourth quarter and 7% for the full year.