Deere & Company reported net income of $1.667 billion for the third quarter ended August 1, 2021, or $5.32 per share, compared with net income of $811 million, or $2.57 per share, for the quarter ended August 2, 2020. For the first nine months of the 2021 fiscal year, net income attributable to Deere & Company was $4.68 billion, or $14.86 per share, compared with $1.993 billion, or $6.30 per share, for the same period last year.
Worldwide net sales and revenues increased 29%, to $11.527 billion, for the third quarter of 2021 and rose 27%, to $32.697 billion, for nine months. Net sales of the equipment operations were $10.413 billion for the quarter and $29.461 billion for nine months, compared with $7.859 billion and $22.612 billion for the same periods last year, respectively. “Our strong results, driven by essentially all product categories, are a testament to the exceptional efforts of our employees and dealers to keep our factories running and customers served while enduring significant supply-chain pressures,” said John C. May, chairman and chief executive officer. “We also made strategic investments in the quarter aligned with our smart industrial strategy. They will further our efforts to help our customers achieve improved profitability, productivity, and sustainability through the effective use of technology.”
($ in millions) | 3Q21 | 3Q20 | Change |
Net sales & revenue | $11,527 | $8,925 | +29% |
Net income | $1,667 | $811 | +106% |
Equipment Operations net sales | $10,413 | $7,859 | +32% |
Production & Precision Agriculture net sales | $4,250 | $3,289 | +29% |
Small Ag & Turf net sales | $3,147 | $2,383 | +32% |
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2021 is forecasted to be in a range of $5.7 billion to $5.9 billion.
“Looking ahead, we expect demand for farm and construction equipment to continue benefiting from favorable fundamentals,” May said. “We are, at the same time, excited by the growing engagement with our digital platform, the John Deere Operations Center, as well as continued adoption of precision technologies, which unlock greater value for our customers.”
Production and precision agriculture sales increased for the quarter due to higher shipment volumes and price realization. Operating profit rose primarily due to higher shipment volumes / sales mix and price realization. These items were partially offset by higher production costs.
Small agriculture and turf sales for the quarter increased due to higher shipment volumes and price realization. Operating profit increased primarily due to higher shipment volumes / sales mix and price realization. These items were partially offset by higher production costs. Results for the third quarter in fiscal 2021 and 2020 were affected by special items. Refer to Note 1 of the financial statements.
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