Deere & Co. says strong sales of its farm equipment helped boost the company's fourth quarter profit by 46 percent and says it expects robust demand will make next year better.
The results beat Wall Street expectations, and its shares climbed nearly 6 percent in premarket trading.
The Moline, Ill., company said Wednesday that equipment sales were up 20 percent in the quarter.
That helped Deere generate net income of $670 million, or $1.62 per share, for the three months ended Oct. 31, up from $457 million, or $1.07 per share, a year ago.
Deere's revenue grew 20 percent to $8.6 billion from last year's $7.2 billion as both sales volume and equipment prices increased.
Analysts surveyed by FactSet expected earnings of $1.43 per share on revenue of $7.91 billion.
Deere said equipment sales will increase about 15 percent next year and profit will grow to $3.2 billion from this year's $2.8 billion.
"We are proud of the company's performance in 2011 and look forward to building on these gains in 2012 and beyond," Chairman and CEO Samuel Allen said in a statement. "We have great confidence in the company's future and our role in helping feed, clothe and shelter the world's growing population."
Deere's report offers an indication of how well farmers worldwide are doing. Deere said it expects farmers to have another good year in 2012 because the demand for agricultural commodities remains strong.
In addition to agricultural equipment, Deere makes construction and forestry equipment, such as backhoes, excavators, riding mowers and leaf blowers. But construction and forestry sales represent a small portion of Deere's business compared to its agricultural equipment.
Its shares climbed $4.18, or 5.8 percent, to $76.10 in premarket trading.
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Online:
Deere & Co.: http://www.deere.com
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