ILLINOSIS: Deere and Company reported a 46 per cent rise in quarterly earnings and projected "substantial growth" for 2012 amid strong global farming conditions, sending its shares higher in premarket trading, Reuters reported on Wednesday."Farmers in the worlds major markets are continuing to experience favourable incomes due to strong demand for agricultural commodities," the worlds largest maker of farm machinery said in a press release.New product launches also boosted its quarterly results, the company said.Moline, Illinois-based Deere posted net income of $669m, or $1.62 per share, for the fiscal fourth quarter that ended October 31, compared with $457m, or $1.07 per share, a year earlier. Revenue rose by 20 per cent to $8.61bn due to strong equipment sales.Wall Street analysts had expected Deere to earn $1.43 a share, according to Thomson Reuters.Deere said its full-year net income of $2.8bn represented a record for the company, and it expected substantial growth in 2012. It is projecting $3.2bn in net income in the fiscal year that began November 1 on a 15 per cent increase in equipment sales."Our success reflects a continued pattern of strong customer response to our innovative lines of equipment coupled with the skillful execution of business plans aimed at expanding our global competitive position," Chief Executive, Mr. Samuel Allen, said in a press release. He said Deere remains well positioned to carry out its extensive growth plans and capitalise on positive long-term economic trends.Deeres strong earnings come during particularly good times for American farmers. Farmland prices surged to their highest level in three decades during the third quarter. The trend had accelerated even as major crop prices had fallen from peaks earlier this year.Rising values and hefty demand in emerging markets had helped buoy earnings for other farm equipment makers recently.Last month, Deere rival Agco Corporation posted stronger-than-expected third-quarter results and raised its full-year outlook for the fourth time. CNH Global, which also outpaced analysts forecasts, said full-year revenue growth would be at the upper end of its prior forecast of 15 per cent to 20 per cent.Deeres shares were up nearly by five per cent in premarket trading.The company said sales outside the United States and Canada rose by 31 per cent in the latest quarter. Agricultural and turf equipment sales rose by 18 per cent and were expected to rise by 15 per cent in 2012. Construction and forestry machinery sales increased by 34 per cent during the quarter and were expected to increase by 16 per cent in 2012.
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