Deere sees itself plowing through hard times. The world’s largest farm equipment maker raised its earnings outlook for the full year Friday. Demand could get a lift as farmers replace their aging tractors and combines. Improved planting conditions and the U.S.’ $19 billion program to provide relief amid the health crisis has lifted farmer sentiment.
As a result, sales of its iconic green and yellow tractors, combines and construction and forestry machines are expected to fall less than the company had earlier forecast.
The sunnier outlook drove shares of Deere higher in early trading Friday, adding to its 10% returns this year.
Its profit in the latest quarter dropped as sales fell at each of its major businesses. But Deere’s top and bottom lines bulldozed past analysts estimates.