Deere Grows Sales 37% as Shipments Rise


Share post:


DE 1.18%

& Co. said its fiscal fourth-quarter sales surged 37% as supply constraints eased and the company shipped more of its farm and construction equipment. 

The Moline, Ill.-based company, the largest supplier of farm equipment in the U.S., said demand held up as it raised prices on farm equipment, and forecast sales gains in the year ahead. Chief Executive

John May

cited strong demand and increased investment in infrastructure projects as the Biden administration ramps up spending. Elevated crop prices have kept farmers interested in new machinery even as their own production expenses increase.

Sales for the fiscal fourth quarter rose to $15.54 billion, topping Wall Street expectations of $13.44 billion. The company said higher prices and more shipments across all of its segments offset higher production costs and the effects of the strong U.S. dollar. Costs for the quarter rose 30% to $12.65 billion.

Shares of Deere rose more than 5% to $438.31 in premarket trading. Through Tuesday’s close, the stock is up more than 21% this year. 

For fiscal 2023, Deere forecast continued growth. In its large farm equipment segment, sales are expected to grow by 15% to 20% while sales of its construction and timber harvesting equipment are expected to rise by about 10%. Sales of its small farm machinery and landscaping equipment are slated to be up to 5% higher. 

The company said price increases across all segments are expected to more than offset the negative effects of the strong U.S. dollar. Profit for the year ahead is expected to be between $8 billion and $8.5 billion, up from $7.13 billion in fiscal 2022. 

For the three months ended Oct. 30, Deere’s profit from small farm machinery and landscaping equipment jumped 46% from the same period a year earlier, while sales from that business rose 26% as the company shipped more equipment and raised prices. 

Profit on large farm equipment, the company’s biggest segment, surged 124% during the quarter while sales rose 59%, the company said. Sales of construction and timber harvesting equipment climbed 20% as profit increased by 53%.

The company said net income for the recently ended quarter rose to $2.25 billion, or $7.44 a share, from $1.28 billion, or $4.12 a share, a year earlier. Analysts polled by FactSet were expecting per-share earnings of $7.11. 

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Source link


Please enter your comment!
Please enter your name here


Related articles

England are rewriting their haunted World Cup history, drawing parallels with 1966 win

DOHA, Qatar -- Remember 1966? You might have heard it mentioned every now and then...

Galaxy Digital Blocked by Judge from Immediately Acquiring Celsius Unit

Alex Dovbnya Alex Dovbnya Mike Novogratz's deal to buy Celsius's GK8 has been paused by a bankruptcy...

PSG president: Confident ‘happy’ Messi will stay

Paris Saint-Germain president Nasser Al-Khelaifi has said he is confident Lionel Messi will stay at...

Are We Missing a Vital Sign? Our Diet Can Unfold Answers To Many of Our Health Concerns – MedCity News

Smriti Kirubanandan and Dr. David Katz African woman opening parcel with meal kit. Imagine a world in...