RICHER FARMERS: U.S. farmers bought new farm machinery to cash in on historically high crop prices. Deere raised its earnings prediction for the fiscal year, reflecting optimism that global food prices will stay high enough to keep farmers profitable.
LAWN MOWERS: Deere also saw improvement in its line of compact tractors and mowers used everywhere from golf courses to backyards. The company said quarterly sales of smaller “utility” tractors used for yard work grew more than 10 percent.
INPUT COSTS: One risk Deere faces is higher prices for steel, which could eat into its margins. Deere said it is considering price hikes later in 2011 to cover those costs.
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