Shares in Deere & Co (NYSE:DE) rose in early trading after the tractor manufacturer told investors it was raising its full year profit guidance.
Although profit and sales fell again in the third quarter as the global farm and construction market remains weak, the company boosted its full year earnings forecast after posting a surprise increase in per-share profit.
Net income fell to US$489mln, or US$1.55 per share, in the period to July 31, up from US$1.53 per share a year earlier, beating Wall Street expectations.
Analysts were expecting 94c per share according to Thomson Reuters I/B/E/S.
The company also said it now expects to earn US$1.35blnthis year, up from its previous forecast of US$1.2bln.
Deere said it was helped by lower production costs which fell by 12% in the three month period, as well as higher prices.
The company, the world’s largest seller of tractors and harvesting combines, has struggled recently as US demand for farm machinery has fallen, while the strengthening US dollar has also made its products more expensive abroad.
Shares were up US$3.7, or 5%, to US$80.63.