(Boursier.com) — Deere & Co. jumped in pre-market trading on Wall Street after the American agricultural machinery giant raised its profit guidance for the year 2023 due to strong demand. Management now expects a net profit of between 9.25 and 9.50 billion dollars against a previous guidance of 8.75 to 9.25 billion dollars. He cites healthy demand for agricultural and construction equipment and an improved operating environment.
“While supply chain constraints continue to present a challenge, we are seeing further improvement,” said firm chief executive John May. The Moline, Illinois-based company is an indicator of the health of the agriculture industry given its position as the world’s largest producer of agricultural machinery.
The company’s net profit in its second fiscal quarter reached $2.86 billion, or $9.65 per share, against $2.49 billion of consensus. Revenue jumped 34% to $16.08 billion, versus $14.85 billion consensus.
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