Summary
Deere & Company (DE) reported a strong first quarter for fiscal year 2021, with significant year-over-year growth in net sales and net income. Net sales increased by 19% to $9.11 billion, driven by robust performance across all major segments, particularly Production and Precision Ag and Small Ag & Turf, which saw sales growth of 22% and 27% respectively. Net income attributable to Deere & Company more than doubled, reaching $1.22 billion, or $3.87 per diluted share, compared to $517 million, or $1.63 per diluted share, in the prior year period. This strong financial performance reflects improved industry conditions, higher shipment volumes, and effective price realization, demonstrating the positive impact of the company's 'smart industrial' operating strategy. The company's financial services segment also demonstrated resilience, with operating profit increasing by 44% due to favorable financing spreads and a lower provision for credit losses. Despite ongoing uncertainties related to the COVID-19 pandemic and supply chain challenges, Deere & Company's outlook for industry sales in agriculture and construction for 2021 remains positive, indicating continued demand for its products and services.
Financial Highlights
44 data points| Revenue | $9.11B |
| R&D Expenses | $366.00M |
| SG&A Expenses | $769.00M |
| Operating Expenses | $7.58B |
| Operating Income | $1.64B |
| Interest Expense | $271.00M |
| Net Income | $1.22B |
| EPS (Basic) | $3.90 |
| EPS (Diluted) | $3.87 |
| Shares Outstanding (Basic) | 313.50M |
| Shares Outstanding (Diluted) | 316.10M |
Key Highlights
- 1Net sales increased 19% to $9.11 billion for the three months ended January 31, 2021, compared to $7.63 billion in the prior year.
- 2Net income attributable to Deere & Company more than doubled, reaching $1.22 billion ($3.87 per diluted share) from $517 million ($1.63 per diluted share) in the prior year.
- 3Operating profit for Equipment Operations surged 196% to $1.38 billion, driven by strong performance in Production & Precision Ag and Small Ag & Turf segments.
- 4Financial Services operating profit increased 44% to $258 million, benefiting from improved financing spreads and lower credit loss provisions.
- 5Deere & Company implemented new segment reporting for fiscal year 2021, dividing Agriculture and Turf into 'Production and Precision Ag' and 'Small Agriculture and Turf' segments.
- 6The company maintained a strong liquidity position with $7.63 billion in cash and marketable securities at the end of the quarter.
- 7Industry sales forecasts for agricultural and construction machinery in key markets for 2021 are positive, indicating continued demand.