• Strong execution contributes to 34% net sales gain and higher earnings.
  • Market environment supported by positive fundamentals and healthy demand for farm and construction equipment.
  • Full-year net income forecast increased to $8.75 billion to $9.25 billion.

MOLINE, Ill. — Deere & Company reported net income of $1.959 billion for the first quarter ended January 29, 2023, or $6.55 per share, compared with net income of $903 million, or $2.92 per share, for the quarter ended January 30, 2022.

Worldwide net sales and revenues increased 32%, to $12.652 billion, in the most recent quarter. Net sales were $11.402 billion for the quarter, compared with $8.531 billion in 2022.

“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 chief executive officer. “We are, at the same time, benefiting from an improved operating environment, which is contributing to higher levels of production.”

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2023 is forecast to be in a range of $8.75 billion to $9.25 billion.

“Deere is looking forward to another strong year on the basis of positive fundamentals, low machine inventories, and a continuation of solid execution,” May said. “We are proud of our recent performance and remain fully committed to helping our customers do their jobs in a more profitable, productive, and sustainable way. We have confidence in our ability to execute on our leap ambitions and run our businesses with real purpose, real technology, and real impact.”

 

Deere & Company                                                   First Quarter      

$ in millions, except per share amounts

2023

2022

% Change

Net sales and revenues

$          12,652

$            9,569

32%

Net income

$            1,959

$              903

117%

Fully diluted EPS

$             6.55

$              2.92

 

Results for the prior period were affected by special items. See Note 1 of the financial statements for further details.

Production & Precision Agriculture                                            First Quarter                          

$ in millions

2023

2022

% Change

Net sales

$           5,198  $

3,356

55%

Operating profit

$           1,208  $

296

308%

Operating margin

23.2%

8.8%

 

Production and precision agriculture sales increased for the quarter as a result of higher shipment volumes and price realization. Operating profit improved primarily due to price realization and improved shipment volume / mix, partially offset by higher production costs and increased SA&G and R&D expenses. UAW contract-ratification bonus costs affected the prior period.

Small Agriculture & Turf                                           First Quarter          

$ in millions

2023

2022

% Change

Net sales

$ 3,001

$ 2,631

14%

Operating profit

$ 447

$ 371

20%

Operating margin

14.9%

14.1%

 

 

Small agriculture and turf sales increased for the quarter due to price realization and higher shipment volumes, partially offset by the negative effects of foreign currency translation. Operating profit improved primarily as a result of price realization and improved shipment volumes. These items were partially offset by higher production costs, increased SA&G and R&D expenses, and the unfavorable effects of foreign currency exchange. 


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