Deere’s Cost Cuts, New Products Lead to Profit

Deere & Co., the world’s largest maker of farm equipment, said its fiscal fourth-quarter profit climbed 4%, helped by cost cuts and new products.

Net income increased to $70.6 million, or 27 cents a share, in the quarter ended Oct. 31, from $68 million, or 28 cents, a year earlier. Sales rose 14% to $3.94 billion, the Moline, Ill.-based company said.

Higher crop prices and tax breaks may give U.S. farmers more money to spend on tractors and combines, after a five-year slump in demand, Deere said.

Deere shares rose $1.24, or 2%, to $61.44 on the NYSE.