Deere & Co. posted net sales and revenue of $13.370 billion for the fiscal second quarter of 2022 compared to $12.058 billion for the second quarter of 2021, a 10.9-percent increase. For the fiscal year to date, Deere reported $22.939 billion compared to $21.170 billion, an 8.4-percent increase.
“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 CEO. “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.”
Net income attributable to Deere & Co. 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.
“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.”
Net sales in Deere’s Construction division were $3.347 billion, compared to $3.079 billion in the fiscal second quarter a year ago, an 8.7-percent hike.
During the quarter, on February 7, 2022, Deere acquired majority ownership in Kreisel Electric Inc., a pioneer in the development of immersion-cooled battery technology. The total cash purchase price, net of cash acquired, was $276 million. On February 28, 2022, the company acquired full ownership of three Deere-Hitachi joint venture factories and began new license and supply agreements with Hitachi Construction Machinery. The two companies also ended their joint venture manufacturing and marketing agreements. Also, as a result of Russia’s invasion of Ukraine, the company has suspended shipments to Russia, which will reduce forecasted revenue for the region.