Net sales and revenues are projected to increase about 9% for fiscal 2017 with net income attributable to Deere of about $2 billion. Outside the USA and Canada, equipment net sales increased 14 percent for the quarter and 13 percent for the first six months.
The agricultural equipment manufacturer posted revenue of $8.29 billion in the period. Its adjusted revenue was $7.26 billion, which also topped Street forecasts.More news: Fiat Chrysler seeks diesel emission certification from EPA
Deere's share price has gained more than 40% over the past year. It now sees 2017 sales gaining 9% to around $25.5 billion, up from a prior forecast of 4% growth, and well ahead of analysts' view of $24.16 billion. Industry sales for agricultural equipment in the USA and Canada are forecast to be down about 5 percent for 2017, reflecting weakness in the livestock sector and the continuing impact of low crop prices.
Deere said it expected fiscal 2017 industry sales of tractors and combined harvesters in South America to increase 20 percent, up from its previous forecast of about 15-20 percent rise, due to improving economic and political conditions in Brazil and Argentina. Deere's performance also reflects the sound execution of our operating plans, the strength of a broad product portfolio, and the impact of our actions to develop a more agile cost structure.More news: Oil rises 2% after Saudi and Russian Federation back longer supply cut
Deere's shares rose as much as 8.5 percent to $122.22 in morning trading. And it's starting to pay off for the employees of John Deere and the company. The consensus 12-month price target was $112.72 before the report.More news: Spurs will adapt to playing at Wembley, says Pochettino
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