Deere net sales and revenues in the first quarter were up 32 percent over the same period in 2022, coming in at $12.7 billion compared to $9.6 billion.

Sales of construction and forestry equipment in the first quarter were $3.2 billion, up 26 percent from the $2.5 billion reported in Q1 2022. Deere attributed the sales gain to higher shipment volumes and price realization. Operating profit for construction and forestry more than doubled to $625 million, due to price realization and improved shipment volumes, partially offset by higher production costs. The company said UAW contract-ratification bonus costs affected the prior period.

The outlook in the construction and forestry segment is for sales to increase between 10 and 15 percent in 2023. Deere reported a price realization growth of 9 percent in its outlook.

The company reported net income of $2.0 billion, up from $900 million in Q1 2022. Expectations for fiscal 2023 are for net income between $8.75 billion and $9.25 billion.

In other segments, production and precision agriculture sales grew 55 percent to $5.2 billion, up from $3.4 billion in Q1 2022. Small agriculture and turf sales were up 14 percent to $3.0 billion compared to $2.6 billion in Q1 2022.

Financial services income was down 20 percent to $185 million.

Deere’s first-quarter performance is a reflection of favorable market fundamentals and healthy demand for our equipment as well as solid execution on the part of our employees, dealers, and suppliers to get products to our customers,” said John C. May, chairman and CEO in a statement. “We are, at the same time, benefiting from an improved operating environment, which is contributing to higher levels of production.”

Source: Deere & Co.