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Deere Predicts Record Profit on Farm, Infrastructure Spending

  • Shares rise by the most in nine months amid upbeat outlook
  • CEO cites crop prices, economic growth in driving demand
A worker operates a Deere & Co. combine while harvesting corn at a farm in Union Springs, New York.

A worker operates a Deere & Co. combine while harvesting corn at a farm in Union Springs, New York.

Photographer: Paul Frangipane/Bloomberg
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Deere & Co.’s financial outlook for the next year signals that global supply chain delays and higher labor costs following a month-long strike in the U.S. won’t significantly dent profits at the world’s largest farm equipment maker.

Deere expects record net income for fiscal 2022 of between $6.5 billion and $7 billion, compared to the average estimate of $6.66 billion by 17 analysts, the Moline, Illinois-based company said Wednesday in a statement. The tractor maker posted fourth-quarter profit that topped analysts’ estimates, though revenue for the period fell short of expectations for the first time in more than two years.