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Net Sales and Revenue Jumps 19 Percent for John Deere in Fiscal First Quarter

Feb. 24, 2021
Deere & Company reported net income of $1.224 billion for the first quarter ended January 31, 2001, or $3.87 per share compared with net income of $517 billion, or $1.63 per share for the fiscal first quarter of 2020, a 136.7-percent net income increase.

Deere & Company reported net income of $1.224 billion for the first quarter ended January 31, 2001, or $3.87 per share compared with net income of $517 billion, or $1.63 per share for the fiscal first quarter of 2020, a 136.7-percent net income increase. Worldwide net sales and revenues increased 19 percent in the first quarter of fiscal 2021 to $9.112 billion. Equipment operations net sales were $8.051 billion for the quarter, compared with $6.530 billion in 2020, a 23.3-percent hike.

“John Deere started 2021 on a strongly positive note,” said John C. May, chairman and CEO. “Our results were aided by outstanding performance across our business lineup and improving conditions in the farm and construction sectors. In addition, our smart industrial operating strategy is making a significant impact on the company’s results while it also helps our customers be more profitable and sustainable.”

Deere expects net income in the range of $4.6 billion to $5 billion for fiscal 2021.

"We are proud of our success executing the strategy and creating a more focused organization that can operate with greater speed and agility," May said. "As our recent performance shows, these steps are leading to improved efficiencies and helping the company target its resources and investments on areas that have the greatest impact. At the same time, even as we ramp up factory production and intensify our efforts to serve customers, we are mindful of the continuing challenges associated with the global pandemic. We remain committed, above all else, to safeguarding the health and well-being of our employees."

Construction and forestry sales moved higher for the quarter primarily because of higher shipment volumes, price realization, and the favorable effects of currency translation. Additionally, the Wirtgen operation’s one-month reporting lag was eliminated resulting in four months of Wirtgen activity in the quarter. Operating profit increased mainly because of higher shipment volumes, plus sales mix and price realization. The increase in profit was partially offset by impairments of long-lived assets and higher production costs. Results last year also included voluntary employee-separation costs.

Net sales in the Construction & Forestry Division were $2.467 billion, compared to $2.044 billion in the fiscal first quarter of 2020, a 20.7-percent increase.