Summary
Deere & Company reported strong financial performance for the third quarter and the first nine months of fiscal year 2022, demonstrating significant revenue growth and increased profitability. Net sales and revenues saw a substantial increase of 22% in the third quarter and 13% year-to-date, driven by higher shipment volumes and effective price realization across its segments, particularly in Production & Precision Ag. The company's net income attributable to Deere & Company grew by 13% in the quarter and 4% year-to-date. This performance was achieved despite ongoing supply chain pressures and inflationary cost increases, showcasing the company's ability to navigate a challenging operational environment and leverage favorable market conditions. The company also highlighted strategic acquisitions and investments aimed at enhancing its technological capabilities and market position, particularly in the area of electrification and autonomous solutions.
Financial Highlights
43 data points| Revenue | $14.10B |
| R&D Expenses | $481.00M |
| SG&A Expenses | $959.00M |
| Operating Expenses | $11.56B |
| Operating Income | $2.65B |
| Interest Expense | $296.00M |
| Net Income | $1.88B |
| EPS (Basic) | $6.20 |
| EPS (Diluted) | $6.16 |
| Shares Outstanding (Basic) | 304.10M |
| Shares Outstanding (Diluted) | 305.70M |
Key Highlights
- 1Net sales and revenues increased by 22% in Q3 2022 to $14.1 billion and by 13% year-to-date to $37.0 billion, reflecting strong demand and pricing power.
- 2Net income attributable to Deere & Company rose by 13% to $1.88 billion in Q3 2022 and by 4% to $4.88 billion year-to-date.
- 3The Production & Precision Agriculture segment showed robust growth, with net sales up 43% in Q3 and operating profit up 43%, driven by higher volumes and price realization.
- 4Deere completed several strategic acquisitions, including a majority stake in Kreisel Electric Inc. (battery technology) and full ownership of three former joint venture factories, enhancing its technological capabilities and market control.
- 5Despite supply chain challenges and inflationary pressures, the company maintained positive operating margins across most segments and expressed confidence in continued favorable conditions into fiscal year 2023.
- 6The company repurchased $2.48 billion of common stock in the first nine months of 2022, indicating a commitment to returning capital to shareholders.
- 7Financing receivables and equipment on operating leases increased by $1.3 billion in the first nine months of 2022, indicating strong financing activity supporting equipment sales.