Farmers upbeat, Deere raises forecast

Deere & Co., the world's largest farm-machine maker, raised its full-year sales forecast, and there's reason to believe that good news will keep coming.

After a prolonged slump for crop prices that slashed farmer income, fundamentals are starting to rebound, according to Farha Aslam, an analyst at Stephens Inc.

Deere said Friday in a statement that net revenue will increase by about 25 percent in fiscal 2018, up from a previous forecast of about 22 percent. It forecast full-year net income, excluding the impact of tax-related adjustments, of $2.85 billion.

A turnaround for the farm economy can only help Deere, which is already on an upswing as corporate farmers begin to replace older equipment. Cuts to inventory and output during the downturn are now adding to the company's positive outlook as it produces more of its iconic green-and-yellow machines to meet demand.

Outside of agriculture, Deere expanded its construction equipment unit last year, and that industry currently is in the midst of a global boom.

Business on 02/17/2018

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