You are here

UPDATE 1-Deere beats profit estimates, raises forecast

(Adds details)

Feb 17 (Reuters) - U.S. farm equipment maker Deere & Co
reported a better-than-expected quarterly profit and
raised its fiscal 2017 equipment sales forecast as it expects
key farm markets to stabilize this year.

The company's shares were up 2.7 percent at $112.15 in
premarket trading on Friday.

Deere's sales have been hit in the past few years as bumper
corn and soybeans harvests have driven down prices, leaving
farmers with less cash to spend on equipment.

To cope with the slump, the company has cut jobs and lowered
production of its trademark green tractors and harvesting
combines.

The company said on Friday its expects fiscal 2017 equipment
sales to increase 4 percent, compared with its previous estimate
of a decline of 1 percent.

Deere also raised it full-year forecast for net income
attributable to the company to $1.5 billion from its previous
estimate of $1.4 billion.

Net income attributable to Deere fell to $193.8 million, or
61 cents per share, in the first quarter ended Jan. 29, from
$254.4 million, or 80 cents per share, a year earlier.

Total net sales fell about 1.5 percent to $4.70 billion.

Analysts on average were expecting earnings of 55 cents per
share on revenue $4.69 billion, according to Thomson Reuters
I/B/E/S.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb
Chakrabarty)

© Copyright Thomson Reuters 2017. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about