World leading manufacturer of agricultural machinery Deere & Company (NYSE: DE) plans to increase its quarterly dividend by 12% and repurchase $5 billion of its own stock.
Agricultural demand also spurs the company to spend $35 million for production increase of combine harvesters by about 30%.
The positive picture of Deere’s business is reflected on its shares boosting increase by as much as 3.6%, or $2.87, to $82.73.
Deere highlights that the dividend payment will constitute 28 cents a share, up 3 cents a share from the previous level, payable Aug. 1 for shareholders of record on June 30.
The company expects overall sales to increase by about 20% for the fiscal third quarter, and agricultural equipment sales to soar by 35% for full-year 2008.
Deere & Company plans to end its combine manufacturing expansion by 2009.
On January 15, it was reported that the Russian government began to develop sanctions against several officials at the World Anti-Doping Agency (WADA)