Despite supply chain pressures causing challenges, Deere & Company has reported continued financial growth through its second fiscal quarter of 2022.
The company reported net income of $2.098 billion in the quarter ending May 1, 2022, an increase from $1.790 billion in the same reporting period of 2021. Through six months, Deere has a net income of $3.001 billion, a slight decline from $3.013 billion in the same period last year.
Net sales and revenues increased by 11 percent to $13.370 billion, while net sales are $12.034 billion in the period.
"Deere's second-quarter performance reflected a continuation of strong demand even as we face supply-chain pressures affecting production levels and delivery schedules," said John C. May, chairman and chief executive officer. "Deere employees, suppliers, and dealers are working hard to address these challenges. We are proud of their extraordinary efforts to get products to our customers as soon as possible under the challenging circumstances."
Construction and forestry sales moved higher for the quarter primarily due to price realization and higher shipment volumes, partially offset by the unfavorable impact of currency translation. Net sales for the segment were up 9 percent to $3.347 billion. Operating profit increased due to a non-cash gain on the remeasurement of the previously held equity investment in the Deere-Hitachi joint venture and price realization. These items were partially offset by higher production costs, impairments related to the events in Russia / Ukraine, and a less-favorable product mix.
Net income attributable to Deere & Company for fiscal 2022 is forecast to be in a range of $7.0 billion to $7.4 billion, which includes a net $220 million gain from special items in the second quarter of 2022.
"Looking ahead, we believe demand for farm equipment will continue benefiting from positive fundamentals in spite of availability concerns and inflationary pressures affecting our customers' input costs," May said. "The company's smart industrial strategy and recently announced Leap Ambitions are focused on helping customers manage higher costs and increasingly scarce inputs, while improving their yields, through the use of our integrated technologies."
