Deere & Co. sales for FY 2023 totaled $61.2 billion, 16% higher than was recorded for FY 2022. Fourth quarter sales, however, were down slightly compared to 2022 coming in at $15.4 billion.
Net income for the company rose 43% for the year to $10.2 billion.
In the construction and forestry space, Deere recorded Q4 sales of $3.7 billion, up 11% over the same period in 2022. Operating profit increased by 25% in the quarter to $516 million. Sales include Wirtgen roadbuilding equipment.
The company cited “price realization” and higher shipment volumes for increases in sales. Operating profit improvement came as a result of price realization, as well, although this was partially offset by higher production costs, less-favorable sales mix, the unfavorable effects of foreign currency exchange, and a loss on the sale of the Russian roadbuilding business.
For fiscal 2024, the company is projecting a 10% decline in construction and forestry sales. In the U.S. and Canada, sales of construction equipment are projected to be down 5 to 10%, with compact equipment sales expected to be flat to down 5%. Global roadbuilding sales are projected to be flat compared to FY 2023.
“While our end markets will fluctuate, we remain focused on disciplined execution and strategically investing in solutions that drive customer value,” said John C. May, chairman/CEO. “As evidenced by our guidance for 2024, we are demonstrating higher levels of through-cycle structural profitability while making our company more resilient and better equipped for the future.”
