Deere & Co reported a 36% rise in second-quarter profit on Friday, beating Wall Street expectations. The world’s largest farm equipment maker saw strong sales of its tractors and precision agriculture equipment, and raised its net income forecast for the rest of the year. Analysts pointed to increasing production levels potentially translating to an oversupply of equipment.
Deere (NYSE:DE) expects 2023 net income in the range of $9.25 billion to $9.50 billion, higher than the $8.75 billion to $9.25 billion forecast earlier. The industrial bellwether has maintained resilient operating profit margins, despite global market volatility. Farmers’ demand for new equipment and parts to repair aging machinery has bolstered Deere’s sales. Net income increased to $2.86 billion from $2.1 billion a year ago, and earnings per share of $9.65 beat analysts’ estimates of $8.59. Total net sales and revenues rose 30% to $17.39 billion for the second quarter.