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Deere quarterly net rises


    CHICAGO (Reuters) - Deere & Co said on Wednesday its fiscal first-quarter earnings rose a better-than-expected 55 percent, as soaring crop prices boosted demand for agricultural equipment across the globe.

    The company, the world's largest maker of agricultural machinery, earned $369.1 million, or 83 cents a share, in the quarter ended Jan 31, compared with $238.7 million, or 52 cents a share, a year earlier.

    Analysts, on average, expected the Moline, Illinois-based company to report a profit of 77 cents a share, according to Reuters Estimates.

    The gains were driven by especially strong results overseas. Sales outside the United States and Canada rose 37 percent, helped, in part, by the weak U.S. dollar.

    Looking forward, Deere expects to report second-quarter net income in a range of $700 million to $725 million and $2.2 billion for the full year.

    Shares were down 2.3 percent to $84.50 in premarket trading from Tuesday's close of $86.48 on the New York Stock Exchange.

    Deere and rival farm equipment makers CNH Global NV and Agco Corp are enjoying record demand for their products thanks to the surge in investment in biofuels as well as increased international consumption.

    The two trends are lifting farm incomes, which are highly correlated with tractors and combine sales.

    On Tuesday, the United States Department of Agriculture predicted that 2008 would be another record year for producers, particularly of wheat, corn, soybeans and other related crops, thanks to continued strong demand from exports and biofuels.

    (Additional reporting by Euan Rocha; Editing by Derek Caney)