Deere & Co. raised its annual profit forecast on Feb. 18, after posting a net income of $903 million in the first quarter, beating earlier estimates.
The farm equipment manufacturer expects a margin boost from price hikes and solid demand for its tractors and equipment.
It appears that there will be plenty of demand for agricultural equipment this year, as farmers are flush with earnings from high grain prices and government stimulus money during the CCP (Chinese Communist Party) virus pandemic.
However, much of this is offset by soaring costs for seeds and fertilizers due to the supply chain crisis.
Net farm income is estimated to have risen 25 percent in 2021, but it may fall 4.5 percent this year, according to the U.S. Department of Agriculture.The company had earlier dealt with a five-week United Auto Workers (UAW) strike, which contributed to inefficiencies in certain factories and higher production costs.
