Deere & Co. reported $12.652 billion in worldwide revenue for its fiscal 2023 first quarter, ended January 29, compared to $9.569 billion for the fiscal first quarter of 2022, a 32.2-percent year-over-year increase.
“Deere’s first quarter performance is a reflection of favorable market fundamentals and healthy demand for our equipment as well as solid execution on the part of our employees, dealers and suppliers to get products to our customers,” said John May, chairman and CEO. “We are, at the same time, benefiting from an improved operating environment, which is contributing to higher levels of production.”
Net income attributable to Deere & Co. for fiscal 2023 is forecast to be in a range of $8.75 billion to $9.25 billion.
“Deere is looking forward to another strong year on the basis of positive fundamentals, low machine inventories, and a continuation of solid execution,” May said. “We are proud of our recent performance and remain fully committed to helping our customers do their jobs in a more profitable, productive and sustainable way. We have confidence in our ability to execute on our leap ambitions and run our businesses with real purpose, real technology and real impact.”
Deere’s Production & Precision Agriculture division revenues hiked 55 percent as a result of higher shipment volumes and price realization. Operating profit improved primarily because of price realization and improved shipment volume and mix, partially offset by higher production costs and increase SA&G and research and development expenses. United Auto Workers contract ratification bonus costs affected the prior period.
Net sales for the Small Agriculture & Turf division increased 14 percent because of price realization and higher shipment volumes, partially offset by the negative impact of foreign currency translation. Operating profit improved 20 percent primarily from price realization and improved shipment volumes.
Construction & Forestry net sales jumped 26 percent primarily because of higher shipment volumes and price realization. Operating profit jumped 130 percent for the same reasons, and UAW contract-ratification bonus costs affected the previous period.