Deere reports 16% profit improvement on increased sales of tractors, combines

Deere & Co. reported net income rose 16 percent in its second fiscal quarter that ended April 30, beating Wall Street estimates.

Sales of tractors and combines showed improvement, and even sales of construction equipment were up in comparison from last year's extreme lows.

Deere reported total net income of $547.5 million, or $1.28 per share, up from $472.3 million, or $1.11 per share, in the year-earlier quarter. Revenues climbed 6 percent, to $7.13 billion from $6.75 billion.

Deere also raised its full-year earnings net income outlook to $1.6 billion from its last estimate of $1.3 million, made in March.

Chairman and CEO Samuel Allen expressed pride in the quarter's results, saying they  reflected a disciplined approach to cost and asset management and solid execution by employees of Deere's business model.”

Shares of Deere stock were up nearly 2.7 percent as the company began an earnings conference call with analysts at 9 a.m.