Deere & Co. posted $14.102 billion in fiscal 2022 third quarter sales and revenue compared to $11.527 billion fiscal 2021 sales and revenue, a 22.3-percent increase. Net income for the fiscal third quarter was $1.884 billion compared to $1.667 billion in the fiscal third quarter of 2021, a 13 percent increase.
For the first nine months of fiscal 2022, Deere reported $37.041 billion compared to $32.697 billion a year ago, a 13.3-percent hike. Net income for the first nine months of fiscal 2022 was $4.885 billion, compared to $4.680 billion a year ago, a 4.4-percent increase.
“We're proud of the extraordinary efforts by our employees to increase factory output and get products to customers under challenging circumstances,” said John May, chairman and CEO. “At the same time, our results reflected higher costs and production inefficiencies driven by the difficult supply-chain situation.”
Deere is forecasting net income in the range of $7 billion to $7.2 billion for fiscal 2022.
“Looking ahead, we believe favorable conditions will continue into 2023 based on the strong response we have experienced to early-order programs,” said May. “We are working closely with our factories and suppliers to meet higher levels of customer demand next year. Additionally, we are confident the company’s smart industrial strategy and leap ambitions will continue unlocking new value for customers through Deere’s advanced technologies and solutions.”
The Construction & Forestry Division reported $3.269 billion in fiscal third quarter net sales compared to $3.016 billion a year ago, an 8.4-percent increase. Operating profit was $514 million compared to $463 in the previous year, an 11-percent jump.
The Production and Precision Agriculture Division jumped 43 percent year over year while the Small Agriculture & Turf Division increased its net sales 16 percent.
As a result of Russia’s invasion of Ukraine, Deere has suspended shipments to Russia, reducing forecasted revenue for the region, and initiated a voluntary employee-separation program. As of July 31, 2022, the company’s net exposure in Russia and Ukraine was approximately $436 million. Net sales from the company’s Russian operations represented 2 percent of consolidated annual net sales from 2017 to 2021.