Surging demand for farm equipment, fueled by rising commodity prices, lifted by 65% second-quarter profits at Deere & Company (NYSE: DE).
The world's largest maker of agricultural equipment said yesterday (Wednesday) that its net income for the quarter ended April 30 rose to $904.3 million on revenue of $8.9 billion. That compares to a profit of $547.5 million on revenue of $7.1 billion in the same quarter last year.
The steep rise of the price of such commodities as corn and wheat in the past year has enriched farmers around the world, allowing them to buy more farm equipment. Deere's farm machinery sales rose 24%.