Deere ups guidance as construction offsets ag swoon

Associated Press

May 22, 2015

In this March 23, 2015 photo, John Deere lawn tractors are on display at a Home Depot in Robinson Township, Pa. Deere & Co. on Friday, May 22, 2015, reported fiscal second-quarter earnings of $690.5 million.

MOLINE, Ill. Solid sales in construction equipment offset a global agricultural slowdown for Deere and the company raised its outlook for the year.

Deere reported second-quarter earnings of $690.5 million, down from the $981 million last year, but better than Wall Street had expected.

Shares rose before the opening bell Friday.

The Moline, Illinois, company posted net income of $2.03 per share, which easily beat the per-share earnings of $1.57 that analysts were looking for, according to a survey by Zacks Investment Research.

The equipment manufacturer posted revenue of $7.4 billion in the period, just short of analyst projections.

Profit for 2015 is now expected to be around $1.9 billion, the company said, up slightly from the $1.8 billion it had projected. Earlier this year.

"John Deere expects to be solidly profitable in 2015, with the year ranking among our stronger ones in sales and earnings despite the pullback in the farm sector," said Chairman and CEO Samuel Allen in a printed statement.

Shares of Deere & Co. rose almost 2 percent, or $1.54, to $91 before the opening bell.