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Deere skid-steer loader

Deere Revenue Hikes 5 Percent in Fiscal First Quarter Despite Labor Issues, Supply Constraints

Feb. 20, 2022
Net sales in the construction and forestry division were $2.544 billion compared to $2.467 billion a year ago, a 3.1-percent increase.

Deere & Co. posted net sales of $9.569 billion in its fiscal first quarter 2022 ended January 30 compared to $9.112 billion in fiscal first quarter of 2021, a 5-percent increase. Net sales in the Construction & Forestry division were $2.544 billion compared to $2.467 billion a year ago, a 3.1-percent increase.

The Small Ag & Turf division fared slight better with sales of $2.631 billion compared to $2.515 billion a year ago, a 4.6-percent hike. Production & Precision Agriculture posted $3.356 billion compared to $3.069 billion in the year-ago quarter, a 9.4-percent jump.

"Deere's performance in the first quarter was impressive given production issues surrounding the delayed ratification of our UAW contract in late November as well as persistent challenges posed by the supply chain and pandemic," said John May, chairman and CEO. "These factors led to higher production costs in the quarter. We continue to work closely with key suppliers to manage the situation, enabling our customers to deliver food production and critical infrastructure. We are proud of the extraordinary efforts being taken by our dealers and employees to get products to our customers as soon possible in today's challenging environment."

Deere is forecasting net income in the range of $6.7 billion to $7.1 billion in fiscal 2022.

"Looking ahead, we expect demand for farm and construction equipment to continue benefiting from strong fundamentals," May added. "At the same time, we are excited about the opportunities to create value for our customers and other stakeholders as outlined in our goals. Because of the hard work that has been done executing the Smart Industrial operating model, we are leveraging technology that delivers improved customer profitability, productivity, and sustainability."