By Dave Sebastian

 

Deere & Co. said it has raised its full-year earnings forecast to $5.3 billion to $5.7 billion from its prior guidance of $4.6 billion to $5 billion, though it sees increased supply-chain pressures for the rest of the year.

"While the company is clearly performing at a high level, Deere expects to see increased supply-chain pressures through the balance of the year," Chairman and Chief Executive John May said Friday. "We are working closely with key suppliers to secure the parts and components that our customers need to deliver essential food production and infrastructure."

The Moline, Ill., maker of agricultural, lawn-care and construction equipment said it expects production and precision agriculture sales to rise 25% to 30% in 2021. It expects sales in its small agriculture and turf segment to rise 20% to 25%, and sales in construction and forestry sales to rise 25% to 30%.

It expects financial-services income of $800 million, which the company said is expected to include a benefit from improvement on operating-lease residual values, income earned on a higher average portfolio, a lower provision for credit losses and more favorable financing spreads.

 

Write to Dave Sebastian at dave.sebastian@wsj.com

 

(END) Dow Jones Newswires

May 21, 2021 06:50 ET (10:50 GMT)

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