Deere & Co. sees demand for its equipment remaining strong.
Photo:
Nathan Laine/Bloomberg News
Deere
DE 0.90%
& Co. posted higher third-quarter sales and profit on strong demand for its farm and construction equipment, despite the challenges of the volatile macroeconomic climate.
Net sales climbed 22% and profit rose 13% in the three months ended July 31, a period that saw high agricultural prices.
Chief Executive
John May
said Friday higher costs and production inefficiencies caused by supply-chain complications damped Deere’s most recent quarterly results. However, the company sees consumer demand remaining strong, as seen in positive responses to early-order programs, and is working to streamline its production supply chain, Mr. May said.
Total costs and expenses rose more than 23% to $11.56 billion, driven in part by inflationary pressures and a stronger U.S. dollar, the company said.
Shares of Deere fell almost 7% in premarket trading.
The company, based in Moline, Ill., said net income rose to $1.88 billion, or $6.16 a share, from $1.67 billion, or $5.32 a share, in the year-ago quarter. Analysts polled by FactSet were expecting per-share earnings of $6.65.
Revenue rose to $14.1 billion from $11.53 billion a year ago. Analysts were expecting revenue of $12.9 billion, according to FactSet.
The company narrowed its full-year profit forecast to $7 billion to $7.2 billion, from its previous view of between $7 billion and $7.4 billion.
Write to Connor Hart at connor.hart@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Deere & Co. sees demand for its equipment remaining strong.
Photo:
Nathan Laine/Bloomberg News
Deere
DE 0.90%
& Co. posted higher third-quarter sales and profit on strong demand for its farm and construction equipment, despite the challenges of the volatile macroeconomic climate.
Net sales climbed 22% and profit rose 13% in the three months ended July 31, a period that saw high agricultural prices.
Chief Executive
John May
said Friday higher costs and production inefficiencies caused by supply-chain complications damped Deere’s most recent quarterly results. However, the company sees consumer demand remaining strong, as seen in positive responses to early-order programs, and is working to streamline its production supply chain, Mr. May said.
Total costs and expenses rose more than 23% to $11.56 billion, driven in part by inflationary pressures and a stronger U.S. dollar, the company said.
Shares of Deere fell almost 7% in premarket trading.
The company, based in Moline, Ill., said net income rose to $1.88 billion, or $6.16 a share, from $1.67 billion, or $5.32 a share, in the year-ago quarter. Analysts polled by FactSet were expecting per-share earnings of $6.65.
Revenue rose to $14.1 billion from $11.53 billion a year ago. Analysts were expecting revenue of $12.9 billion, according to FactSet.
The company narrowed its full-year profit forecast to $7 billion to $7.2 billion, from its previous view of between $7 billion and $7.4 billion.
Write to Connor Hart at connor.hart@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8