Deere posts 17 pct profit spike, beats expectations

John Deere equipment sit on the sales lot of Deems Farm Equipment Inc., in Lawrence, Kan., Wednesday, Aug. 15, 2007. Deere and Company said their third quarter profits were up 23 percent on strong sales outside the U.S. and Canada. (AP Photo/Orlin Wagner)
Orlin Wagner

(AP) MOLINE, Ill. - Deere (DE) is posting a 17 percent spike in profits for the second quarter is raising its outlook for the year, with farm receipts expected to hit historic heights.

The company beat Wall Street expectations on net income and revenue, posting a profit of $1.06 billion, or $2.61 per share, up from $904 million, or $2.12 per share, in the same quarter last year.

Revenue jumped 12 percent to $10 billion, from $8.9 billion.

Deere & Co., based in Moline, Ill., said Wednesday that it expects equipment sales to increase about 15 percent in 2012 and is raising its full-year profit prediction to about $3.35 billion. Deere previously predicted profits of $2.75 billion.

Shares are edging higher in premarket trading.