Construction and forestry sales increased to $3.7 billion in its third quarter, up 14% over Q3 2022. The company cited price realization and higher shipment volumes. Operating profit for the segment, which includes Wirtgen, rose 39%, again attributed to pricing and volumes. The fiscal 2023 outlook for construction and forestry is for sales to increase 15% to 20% and price realization of 11%.
Corporate worldwide sales increased 12 percent in the quarter to $15.8 billion, compared to $14.1 billion in Q3 2022. Production and precision ag sales were $6.8 billion, up 12%; small ag and turf sales were $3.7 billion, up 3%, and financial services posted a 36% gain to $1.2 billion.
“Reflected by our strong third-quarter results, Deere continues to benefit from favorable market conditions and an operating environment showing further improvement,” said John C. May, chairman/CEO, in a statement. “We are also being helped by stabilizing conditions in the supply chain, the sound execution of our business plans, and an improving ability to meet demand for our products and serve customers.
“Deere is well on the way to another year of exceptional achievement due in large part to positive fundamentals in the farm and construction sectors and the unwavering commitment of the Deere team, including our dealers and suppliers,” May said. “Fundamentals are expected to continue fueling solid demand for our equipment, supported by a strong advance-order position.”
Source: Deere
