Shares of Deere & Company (NYSE: DE) jump more than 11% Friday, after the company raised its full year profit. Deere reported that net income will be $1.35 billion in the year through October, above the $1.2 billion which was estimated in May.
Deere & Company is engaged in equipment operations and financial services. The Company operates through three business segments: agriculture and turf, construction and forestry, and financial services. The company is the world’s largest agricultural equipment maker, and as such, their surge in full year profit is impressive since it goes against the farming recession which currently takes place.
Deere & Co managed to achieve their good performance through a series of cost cutting. The cuts will cost are expected to boost pretax income by approximately $500 million by the end of 2018, even if the agricultural recession will continue at current levels.