John Deere is surging after beating on earnings in a farming recession

Deere on Wednesday reported fourth-quarter earnings that were better than analysts expected, even as it works through a global farming recession.

The maker of large farming machinery said it earned $0.90 per share, crushing the forecast for $0.39. Net sales fell 5% year-on-year to $5.65 billion, more than the forecast for $5.44 billion. Deere shares jumped 11% in premarket trading.

“The company in 2016 had one of its ten-best years in both sales and earnings, a noteworthy achievement in light of the difficult business climate,” said CEO Samuel Allen in a statement.

Crop surpluses and weaker commodity prices toughened business conditions for companies like Deere, which serve the farming industry. Deere has weathered the recession in part by cutting costs. It recently announced a voluntary employee-separation program, which will cost about $116 million in total, and save approximately $75 million in 2017.

The company expects that equipment sales will be down 1% for the fiscal year 2017.

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