Deere and Co. said Friday its net income jumped 117% in the latest quarter compared to the same period a year earlier, and the farm equipment giant raised its earnings estimate for fiscal 2023.

Net sales of production and precision agriculture equipment were up 55% to $5.2 billion for the quarter that ended Jan. 30, over the same period a year earlier. The sector’s operating profit hit $1.2 billion for the latest quarter, a 308% increase year over year, the company reported

Deere shares were up more than 6% in trading Friday morning.

The company raised its earnings forecast for FY23 to a range of $8.75 billion to $9.25 billion. Deere had previously forecast FY23 earnings at $8 billion to $8.5 billion.

Deere expects its production and precision ag sales to be 20% higher this year over FY22. 

“Deere is looking forward to another strong year on the basis of positive fundamentals, low machine inventories, and a continuation of solid execution,” Deere Chairman and CEO John C. May said in a press release.

U.S. equipment inventories remain tight and the average age of tractors in the U.S. is unlikely to decline that much, Deere executives told analysts.

Brent Norwood, head of investor relations for Deere, said farm equipment sales in South America, especially Brazil, should be strong both this year and longer term.

“That's a market that's going to see record production for corn and soy, and near record production for cotton and sugar. Profitability will be outstanding this year,” he said.

Longer term, Brazil also is a promising market for both existing and next-generation technology as connectivity improves, he said.

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