Deere & Company reported net income of $1.884 billion for the third quarter ended July 31, 2022, compared with net income of $1.667 billion for the quarter ended August 1, 2021.
Deere's 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.
Deere & Co.'s worldwide net sales and revenues increased 16%, to $11.327 billion, for the fourth quarter of fiscal 2021 and rose 24%, to $44.024 billion, for the full year.
Despite a strong performance in Deere & Co.’s third quarter, supply chain challenges persisted and in some cases became more complicated, says Ryan Campbell, Deere’s chief financial officer.
In a July 2020 note to investors, Mircea (Mig) Dobre, discussed how the shares of farm equipment manufacturers had held up compared to other machinery companies despite difficult industry fundamentals.
While some positive signs are emerging for large equipment sales in the production segment of the agricultural industry, sales of small equipment and other rural lifestyle products is where the real action is these days. In addition to the record-setting sales of compact tractors, other segments of this market are also booming.
Deere & Co. reported consolidated net sales and revenues of $8.9 billion during its third quarter ended Aug. 2, 2020 vs. $10 billion in the same period a year earlier, a decline of 11%. Equipment operations came in at $7.9 billion during the period compared to nearly $9 billion last year, also a drop off of 12%.
It’s difficult finding anything positive coming out of the COVID-19 pandemic, but it appears the stay-at-home/work-from-home directives are pumping up the sales of small farm machinery.
According to published reports, John Deere has signed an agreement to sell SABO Maschinenfabrik to Mutares SE & Co. The transaction is contingent on regulatory approval by the Federal Cartel Office Bundeskartellamt, Germany's national competition regulator.
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