Deere & Company News: Impressive Q3 Financial Results
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Deere & Company News: Impressive Q3 Financial Results

Deere & Company (NYSE: DE) has released its financial results for the third quarter of 2023, showcasing a significant increase in net income and sales compared to the previous year.

For the July 30, 2023 quarter, the company reported a net income of $2.978 billion, or $10.20 per share. This marks a notable rise from the $1.884 billion, or $6.16 per share, reported for the same period in 2022. The first nine months of 2023 also saw a surge in net income, reaching $7.797 billion or $26.35 per share, compared to $4.885 billion or $15.88 per share in 2022.

Worldwide net sales and revenues for the third quarter of 2023 increased by 12%, totaling $15.801 billion. This growth is even more pronounced when looking at the nine-month period, with a 24% increase, amounting to $45.839 billion.

John C. May, Chairman and CEO of Deere & Company, commented on the results, stating, “Deere continues to benefit from favorable market conditions and an operating environment showing further improvement.” He attributed the company’s success to stabilizing supply chain conditions, effective execution of business plans, and an enhanced ability to meet product demand.

Segment Highlights:

  • Production & Precision Agriculture: Sales increased by 12%, reaching $6.806 billion. Operating profit rose by 38%, attributed to price realization and improved shipment volumes.
  • Small Agriculture & Turf: This segment saw a 3% increase in sales, amounting to $3.739 billion. Operating profit improved by 33%, primarily due to price realization.
  • Construction & Forestry: Sales in this segment grew by 14%, totaling $3.739 billion. The operating profit saw a significant rise of 39%, mainly due to price realization and higher shipment volumes.
  • Financial Services: The net income for this segment increased by 3%, reaching $216 million. The growth is attributed to income earned on a higher average portfolio.

Deere & Company forecasts a net income of $9.75 billion to $10.00 billion for fiscal 2023. May expressed optimism about the company’s trajectory, citing positive fundamentals in the farm and construction sectors and the dedication of the Deere team.

Industry Outlook for Fiscal 2023:

  • Agriculture & Turf: Expectations are mixed, with ample agricultural equipment in the U.S. & Canada projected to rise by approximately 10%, while small agricultural and turf equipment could decrease by 5 to 10%.
  • Construction & Forestry: The U.S. & Canada could witness a growth of up to 5% in construction equipment sales, while global forestry sales might decrease by up to 5%.

In conclusion, Deere & Company’s third-quarter results highlight the company’s resilience and adaptability in a dynamic market environment. With a strong foundation and strategic planning, the company is poised for continued growth in the coming months.

Please refer to Deere & Company’s official announcement for more detailed financial data and insights.

Note: This article is for informational purposes only and does not constitute financial advice. Always consult with a financial advisor before making any investment decisions.

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Photo by Dan Loran on Unsplash 

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