Deere says last 9 months of earnings already have beat full-year profits record set in 2013
Deere & Co., the Quad Cities-based farm and construction equipment manufacturer, says it's earned more in the first nine months of its 2021 fiscal year than it did during its record full year for earning, fiscal 2013.
Deere, reporting third-quarter results Friday, said net income for the nine months ending Aug. 2 was nearly $4.7 billion. Full-year fiscal 2013 income was $3.5 billion.
Analysts say higher prices for corn and soybeans is driving up demand for Deere agricultural equipment, as it did in 2013. Soaring demand for new homes and an expected boost in bridge, road and other infrastructure construction also is increasing sales of other Deere equipment.
Deere reported global sales for nine months hit $32.7 billion. Full-year sales were $35.6 billion in 2013, company records show.
CEO John May said the company, with headquarters in Moline, Illinois, expects demand for equipment "to continue benefiting from favorable fundamentals.”
Deere boosted its earnings expectations Friday to between $5.7 billion and $5.9 billion for the year, up from the $5.3 billion-$5.7 billion forecast in the second quarter.
Net income for the third quarter was $1.7 billion, more than double the amount for the same quarter a year ago. Sales climbed to $11.5 billion, 27% more than a year earlier.
Among the results: third-quarter ag equipment sales climbed 29% to nearly $4.3 billion over a year earlier, and construction and forestry equipment sales climbed 38% to $3 billion.
May said the company posted strong results despite "enduring significant supply-chain pressures."
Deere said each quarter this year has set new quarterly earnings records. The company earned $1.2 billion in the first quarter and nearly $1.8 billion in the second quarter.
The company employs about 7,200 production workers in Iowa facilities that include the Davenport, Des Moines, Dubuque, Ottumwa and Waterloo works. The company has begun contract negotiations with the UAW on a new contract
Deere said employee-separation packages that resulted in a $138 million charge affected last year's earnings.
In a call with analysts, Deere executives said Friday that the company is investing heavily in automating farm and construction equipment, pointing to the growing shortage of skilled workers. Earlier this month, Deere purchase Bear Flag Robotics, a Silicon Valley-based startup developing autonomous driving technology, for $250 million.
Donnelle Eller covers agriculture, the environment and energy for the Register. Reach her at email@example.com or 515-284-8457.