What drove the significant increase in net sales and revenues?

Net sales and revenues increased by 11% to $13.37 billion, primarily driven by strong demand across all segments, especially Production & Precision Agriculture and Construction & Forestry. Significant price realization and higher shipment volumes were key contributors to this growth.

How did the company manage supply chain disruptions?

While the company acknowledged ongoing supply chain pressures impacting production levels and delivery schedules, it effectively navigated these challenges through strong execution, strategic pricing, and collaboration with suppliers and dealers. The company's smart industrial operating model is also focused on helping customers manage costs and inputs despite these pressures.

What were the key strategic moves made by Deere in this quarter?

Deere made two significant strategic acquisitions: majority ownership in Kreisel Electric Inc., a battery technology company, and full ownership of three former Deere-Hitachi joint venture factories. Additionally, the company issued $600 million of sustainability-linked medium-term notes, reflecting its ESG commitments.

What is the outlook for the company's segments?

Industry sales for large agricultural machinery in the U.S. and Canada are expected to be up about 20%. Turf and utility equipment sales are expected to be flat. European agricultural machinery sales are forecast to increase by 5%, and South American sales by 10%. Construction and forestry equipment sales are projected to be flat to up 5% globally, with roadbuilding equipment sales also forecasted to be flat to up 5%.

DE 10-Q Quarterly Report Q2 FY2022 — Revenue, Net Income, EPS

Summary

Deere & Company (DE) reported robust financial results for the second quarter of fiscal year 2022, demonstrating strong top-line growth and improved profitability. Total net sales and revenues increased by 11% year-over-year to $13.37 billion. This growth was driven by strong demand across its segments, particularly in Production & Precision Agriculture and Construction & Forestry, supported by significant price realization. Net income attributable to Deere & Company rose by 17% to $2.098 billion, translating to diluted earnings per share of $6.81, up from $5.68 in the prior year. Despite facing ongoing supply chain pressures that impacted production levels, the company effectively navigated these challenges through strong execution and strategic pricing. The company also highlighted strategic acquisitions and a new sustainability-linked note issuance, underscoring its commitment to long-term growth and environmental, social, and governance (ESG) objectives.

Financial Highlights

44 data points

Beta

Revenue

$13.37B

Net Income

$2.10B

0.2% Net Margin

EPS (Diluted)

$6.81

Total Assets

$84.10B

Cash & Equivalents

$3.88B

Free Cash Flow

$638.00M

Financial Statements

Beta

Revenue	$13.37B
R&D Expenses	$453.00M
SG&A Expenses	$932.00M
Operating Expenses	$10.82B
Operating Income	$2.67B
Interest Expense	$187.00M
Net Income	$2.10B
EPS (Basic)	$6.85
EPS (Diluted)	$6.81
Shares Outstanding (Basic)	306.20M
Shares Outstanding (Diluted)	308.10M

Key Highlights

1Net sales and revenues increased 11% to $13.37 billion in Q2 FY2022.
2Net income attributable to Deere & Company grew 17% to $2.098 billion.
3Diluted earnings per share rose to $6.81 from $5.68 in the prior year's quarter.
4Production & Precision Agriculture and Construction & Forestry segments showed strong sales growth driven by price realization and higher shipment volumes.
5The company acquired majority ownership in Kreisel Electric Inc., a battery technology company, and full ownership of three former Deere-Hitachi joint venture factories.
6Despite supply chain challenges, the company maintained strong demand across its product lines.
7Deere & Company declared a quarterly dividend of $1.13 per share, an 8% increase from the previous rate.

DEERE & CO Quarterly Report for Q2 Ended May 1, 2022

Summary

Financial Highlights

Key Highlights

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