Deere Reports Q3 Results
Third-quarter net sales rise 25%, bolstered by higher rates of production, despite continuing supply-chain pressures.
Deere & Company reported a net income of $1.9 billion for the third quarter ending July 31, 2022, as compared with a net income of $1.7 billion, for the same quarter last year. Net sales were $13 billion for the quarter, as compared with $10.4 billion last year.
John C. May, chairman and chief executive officer stated, “Our results reflected higher costs and production inefficiencies driven by the difficult supply-chain situation. Looking ahead, we believe favorable conditions will continue into 2023 based on the strong response we have experienced to early-order programs.”
Production and precision agriculture sales increased for the quarter due to higher shipment volumes and price realization, partially offset by the unfavorable impact of currency translation. Operating profits rose primarily due to price realization and higher shipment volumes / sales mix. These items were partially offset by higher production costs, higher selling, administrative and general expenses, increased research and development expenses, and the unfavorable effects of foreign currency exchange.