Feb. 13 - Deere's total revenue rose 10 percent to $7.42 billion in the final quarter of 2012, well ahead of analysts' expectations. Conway G. Gittens reports.
The Daily Digit is $7.42 billion. That's Deere's fiscal first quarter revenue, well ahead of the $6.72 billion economists expected. The world's largest farm equipment maker cashing in on farmers gearing up to plant the biggest corn crop in U.S. history following the worst drought in the U.S. Midwest in more than half a century. Sales of agriculture and turf equipment, which make up about three-quarters of Deere's total revenue, jumping 16 percent. Net income rose to just under $650 million or $1.65 per share up from $1.30 a year earlier. In 2013, the company foresees stronger demand from South America, reflecting a booming commodities market in Brazil. Sales in North America could jump 5 percent, where in the U.S. Deere could stand to get a chunk of the record $127.6 billion in farm income predicted by the Department of Agriculture. As a result, Deere is raising its full-year profit forecast to $3.3 billion from $3.2 billion.