Summary
Deere & Company reported strong financial results for the third quarter and first nine months of fiscal year 2021, significantly exceeding prior year performance. Net sales and revenues increased by 29% and 27% respectively for the respective periods, driven by robust demand across all major product lines, including Production & Precision Agriculture, Small Agriculture & Turf, and Construction & Forestry. This growth was fueled by higher shipment volumes and favorable price realization. The company also saw a substantial increase in net income, more than doubling year-over-year for the third quarter and showing a significant rise for the nine-month period. Despite persistent supply chain pressures, Deere & Company demonstrated strong operational execution. The financial services segment also performed well, with increased operating profit driven by higher average portfolio balances, improved operating lease residual values, and a lower provision for credit losses. The company's strategic focus on technology and precision agriculture continues to be a key driver of its success. Looking ahead, Deere expects continued strong industry sales across its segments, though it acknowledges ongoing supply chain challenges and broader economic uncertainties.
Financial Highlights
44 data points| Revenue | $11.53B |
| R&D Expenses | $394.00M |
| SG&A Expenses | $841.00M |
| Operating Expenses | $9.38B |
| Operating Income | $2.24B |
| Interest Expense | $244.00M |
| Net Income | $1.67B |
| EPS (Basic) | $5.36 |
| EPS (Diluted) | $5.32 |
| Shares Outstanding (Basic) | 311.00M |
| Shares Outstanding (Diluted) | 313.40M |
Key Highlights
- 1Net sales and revenues surged by 29% in Q3 2021 and 27% for the first nine months of FY21 compared to the prior year, indicating strong market demand.
- 2Net income attributable to Deere & Company more than doubled in Q3 2021, rising by 106%, and increased substantially for the first nine months by 135%, showcasing significant profitability improvements.
- 3Operating profit across all segments (Production & Precision Agriculture, Small Agriculture & Turf, Construction & Forestry) showed substantial year-over-year growth, with Construction & Forestry experiencing a notable 126% increase in Q3 operating profit.
- 4Financial Services segment revenue saw a modest increase of 1% in Q3 and a slight decrease of 2% for the nine-month period, but operating profit grew significantly by 20% and 69% respectively, driven by favorable financing spreads and improved lease residuals.
- 5The company continues to invest in technology, highlighted by the acquisition of Bear Flag Robotics for autonomous tractor technology, signaling a commitment to innovation and future growth in precision agriculture.
- 6Deere & Company's balance sheet remains strong, with total assets increasing and stockholders' equity growing by $2.8 billion in the first nine months of FY21.
- 7The company declared a quarterly dividend of $1.05 per share, an increase of approximately 17% over the previous level, demonstrating confidence in its financial performance and commitment to returning value to shareholders.