Deere Q1 Sales Increase 5%

Deere & Co. said sales and revenues increased 5 percent in the first quarter of 2022 to $9.6 billion. Sales of equipment, including Deere and Wirtgen construction brands, were $8.5 billion, up from $8.1 billion in the same period of 2021.

Net income for the first quarter of 2022 was down from 2021 to $903 million. Last year, Q1 net income was $1.2 billion.

“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 C. May, chairman and CEO, in a prepared statement. “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 Construction Sales

Net sales in the construction and forestry segment were $2.54 billion in the first quarter, up 3 percent from the $2.47 billion reported in the same period in 2021. The company cited

price realization and higher shipment volumes. Last year, it said, Wirtgen’s one-month reporting lag was eliminated resulting in four months of Wirtgen activity in the first quarter of 2021, which increased “Net sales” by $270 million.

Operating profit for construction and forestry was higher mainly due to price realization, partially offset by higher production costs and lower sales / unfavorable sales mix. The current period was impacted by the UAW contract-ratification bonus.

In its outlook for fiscal 2022, the company expects construction equipment sales in U.S. and Canada to be up between 5 and 10 percent, with compact construction sales flat to up 5 percent. Global roadbuilding sales are expected to be up between 5 and 10 percent.

“Looking ahead, we expect demand for farm and construction equipment to continue benefiting from strong fundamentals,” May said. “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.”

Source: Deere & Co.