- Quarterly earnings rise 17% on increase in net sales of 9%
- Market conditions and industry fundamentals support continuation of robust environment
- Full-year earnings forecast increased to $7-7.4 billion, including special items.
Deere & Company reported net income of $2.098 billion for the second quarter ended May 1, 2022, compared with net income of $1.79 billion, for the quarter ended May 2, 2021. For the first 6 months of the year, net income attributable to Deere & Company was $3.001 billion, compared with $3.013 billion, for the same period last year.
Net sales and revenues increased 11%, to $13.37 billion, for the second quarter of 2022 and rose 8%, to $22.939 billion, for 6 months. Net sales were $12.034 billion for the quarter and $20.565 billion for 6 months, compared with $10.998 billion and $19.049 billion last year.
Production and precision agriculture sales increased for the quarter due to price realization and higher shipment volumes. Operating profit rose primarily due to price realization and higher shipment volumes / sales mix. These items were partially offset by higher production costs, higher research and development and selling, administrative, and general expenses, and impairments related to events in Russia / Ukraine.
“Deere’s second-quarter performance reflected a continuation of strong demand even as we face supply-chain pressures affecting production levels and delivery schedules,” said John C. May, chairman and chief executive officer. “Deere employees, suppliers, and dealers are working hard to address these challenges. We are proud of their extraordinary efforts to get products to our customers as soon as possible under the challenging circumstances.”
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2022 is forecast to be in a range of $7.0 billion to $7.4 billion, which includes a net $220 million gain from special items in the second quarter of 2022. For further details on special items, see Note 1 of the press release financial statements.
“Looking ahead, we believe demand for farm equipment will continue benefiting from positive fundamentals in spite of availability concerns and inflationary pressures affecting our customers’ input costs,” May said. “The company’s smart industrial strategy and recently announced Leap Ambitions are focused on helping customers manage higher costs and increasingly scarce inputs, while improving their yields, through the use of our integrated technologies.”
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