John Deere & Co. on Wednesday reported its first increase in annual sales in four years, the latest sign that the company, known for its green-and-yellow tractors, is finally climbing out of a prolonged downturn amid languishing commodity prices. It also forecast higher revenue for fiscal 2018 and bigger-than-expected earnings. The shares rose as much as 4.9 percent.
The world's largest farm machinery manufacturer is on an upswing even as the U.S., which still accounts for most of Deere's revenue, expects farm incomes to decline this year. In October, Deere saw the biggest surge in demand for its big equipment since 2010, with all categories of machinery rising by double-digit percentages in North America, Mircea Dobre, an analyst at Robert W. Baird & Co. Inc. in Milwaukee, said in a report earlier this week.
Industrywide demand for large machinery will grow as much as 10 percent in fiscal 2018, Deere said. North America is expected to be the strongest region.
Business on 11/23/2017