After earning $4.7 billion in the first nine months of its fiscal year, Deere & Co. announced today it is raising its fiscal year net income projections to between $5.7 and $5.9 billion.
Despite seeing disruptions in the supply chain that have made it difficult for some dealers to keep up with demand, Deere said that it has seen a $2.7 billion increase in net income so far this fiscal year compared to the same period last year. Net income for the third quarter, which ended Aug.1, was $1.7 billion, or $5.32 per share, compared with net income of $811 million, or $2.57 per share, for the quarter that ended Aug. 2, 2020.
“Our strong results, driven by essentially all product categories, are a testament to the exceptional efforts of our employees and dealers to keep our factories running and customers served while enduring significant supply-chain pressures,” John C. May, the chairman and chief executive officer, said in the release.
Deere tallied $10.4 billion in net sales for its equipment operations division in the company’s third quarter, a 32% increase from the previous year.
In that period, the firm's production and precision agriculture division saw a 29% increase in net sales from the same period in 2020, while net sales in its small agriculture and turf division grew by 32%. Net sales in its construction and forestry division saw a 38% boost from the year prior.
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Earlier this month, the company announced its intent to expand its capabilities in automation and precision agriculture by purchasing Bear Flag Robotics, a California-based startup, for $250 million.
The company indicated in the release that it expects to see similar levels of demand for equipment continue in the near future.
“Looking ahead, we expect demand for farm and construction equipment to continue benefitting from favorable fundamentals,” May said.
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