Summary
Deere & Company's 2021 10-K filing highlights a robust year marked by significant increases in net sales and net income, driven by strong end-market demand across its agricultural and construction equipment segments. The company experienced a 27% increase in net sales for both its Production and Precision Agriculture and its Small Agriculture and Turf segments, as well as its Construction and Forestry segment. This growth was attributed to favorable industry fundamentals, including strong crop prices and economic growth, supported by disciplined price realization and increased shipment volumes. Despite strong demand, the company navigated ongoing supply chain disruptions, component shortages, and global logistics challenges that persisted from the COVID-19 pandemic. A notable event during the period was a UAW labor strike in October 2021, which temporarily impacted operations but was resolved with a new collective bargaining agreement in November 2021. The financial services segment also performed well, with net income increasing significantly due to improved operating lease residual values, a lower provision for credit losses, and favorable financing spreads, benefiting from a higher average portfolio. Looking ahead, Deere anticipates continued strong demand, though it remains vigilant about supply chain pressures and global economic uncertainties. The company is strategically investing in technology and innovation, including acquisitions aimed at enhancing its precision technology and autonomous capabilities, positioning itself for future growth in a dynamic market.
Financial Highlights
30 data points| Revenue | $44.02B |
| R&D Expenses | $1.59B |
| SG&A Expenses | $3.38B |
| Operating Expenses | $36.42B |
| Operating Income | $8.01B |
| Interest Expense | $993.00M |
| Net Income | $5.96B |
| EPS (Basic) | $19.14 |
| EPS (Diluted) | $18.99 |
| Shares Outstanding (Basic) | 311.60M |
| Shares Outstanding (Diluted) | 314.00M |
Key Highlights
- 1Deere & Company reported a significant increase in net sales and net income for the fiscal year 2021, reflecting strong demand across all major equipment segments.
- 2Net sales for Production & Precision Agriculture, Small Agriculture & Turf, and Construction & Forestry segments each grew by 27%, driven by higher shipment volumes and price realization.
- 3The company successfully navigated supply chain disruptions and component shortages, working with suppliers to meet customer demand.
- 4The Financial Services segment saw a substantial increase in net income, supported by improved operating lease residual values and a lower provision for credit losses.
- 5A UAW labor strike occurred in Q4 2021 but was resolved with a new six-year collective bargaining agreement, though it had a temporary adverse effect on Q4 operations and will impact Q1 2022 results.
- 6Deere made strategic acquisitions, including Bear Flag Robotics, to accelerate its precision technology and autonomous capabilities.
- 7The company repurchased $2.5 billion of its common stock in fiscal year 2021 and declared a quarterly dividend, demonstrating a commitment to returning capital to shareholders.