(Reuters) -Deere & Co raised its annual profit forecast on Friday boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the Russia’s invasion of Ukraine fueled crop prices and spurred demand.
A tight supply of grains elevated prices, supporting healthy farm income and encouraged farmers to upgrade their fleet. Demand will likely outpace crop supplies until at least 2024, grains giant Archer-Daniels-Midland Co said last month. Shares of the world’s largest farm equipment maker surged to record highs in March as investors bet on stronger demand.
Including special items, the company forecast fiscal 2022 net income between $7.0 billion and $7.4 billion, up from a prior estimate of $6.7 billion and $7.1 billion. The Moline, Illinois-based firm’s net income was $2.09 billion or $6.81 per share for the quarter ended May 1, compared $1.79 billion or $5.68 per share a year earlier.
Total net sales and revenue rose about 11% to $13.37 billion from $12.06 billion.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Krishna Chandra Eluri)
