(Reuters) – Deere & Co on Friday raised its full-year profit forecast and posted a 169% surge in quarterly profit, as a recovering global economy boosts demand for farm machine and construction equipment.
While a rebounding global economy has boosted demand for agriculture and construction equipment, companies are increasingly flagging supply chain constraints and semiconductor crunch as major bottlenecks that could thwart growth in the near term.
“Deere expects to see increased supply-chain pressures through the balance of the year,” Chief Executive Officer John May said.
The company, however, expects net income for 2021 to be between $5.3 billion and $5.7 billion, up from a previous forecast of $4.6 billion to $5.0 billion.
The world’s largest farm equipment manufacturer said revenue in the company’s equipment operations rose to $11 billion from $8.22 billion a year earlier.
Total revenue rose to $12.06 billion from $9.25 billion.
Net income attributable to the company rose to $1.79 billion, or $5.68 per share, in the second quarter, from $666 million, or $2.11 per share.
(Reporting by Shreyasee Raj in Bengaluru; Editing by Vinay Dwivedi)
