How Deere & Co.'s Earnings Have Fluctuated Amidst Economic Headwinds
Deere & Co.'s Recent Earnings Reports
Third-Quarter 2022
* WEB Deere Co reported a lower third-quarter profit on Thursday as high borrowing rates and plummeting farm income weighed on demand for its agricultural equipment. * Net income fell to $1.95 billion, or $6.54 per share, in the three months ended July 31, from $2.35 billion, or $7.86 per share, a year earlier. * Revenue rose 17% to $15.54 billion.
Second-Quarter 2022
* WEB Deere Co beat analysts expectations for third-quarter profit today as stronger pricing and cost cutting offset a decline in sales volume. * The world's largest farm equipment maker reported net income of $2.27 billion, or $7.64 per share, for the three months ended July 31. * That compared with $2.11 billion, or $7.05 per share, a year earlier.
First-Quarter 2022
* WEB Deere profit falls on sluggish demand * Aug 15 Reuters - Deere Co reported a lower second-quarter profit on Thursday as sluggish demand for its farm equipment weighed on sales. * Net income fell to $1.69 billion, or $5.64 per share, in the three months ended April 30, from $2.23 billion, or $7.23 per share, a year earlier.
Full-Year 2021
* WEB May 16 Reuters - Deere DEN on Thursday trimmed its annual profit forecast for the second time and cut its equipment sales outlook, citing supply-chain disruptions and rising costs. * The world's largest farm equipment maker now expects net income of $7 billion to $7.2 billion for the year ending October 31, down from its previous forecast of $7.2 billion to $7.6 billion. * Deere also cut its equipment sales forecast to $44 billion to $46 billion, from $46 billion to $48 billion previously.
Factors Influencing Deere & Co.'s Earnings
Several factors have influenced Deere & Co.'s recent earnings performance: *
Rising borrowing rates: Higher interest rates make it more expensive for farmers to finance equipment purchases, reducing demand for Deere's products. *
Declining farm income: Falling crop prices have reduced farmers' profits, making them less likely to invest in new equipment. *
Supply-chain disruptions: The COVID-19 pandemic has disrupted global supply chains, leading to shortages of components and increased production costs. *
Stronger pricing: Deere has been able to offset some of the impact of lower sales volumes by raising prices on its equipment. *
Cost cutting: The company has implemented cost-cutting measures to improve its profitability.
Outlook for Deere & Co.'s Earnings
Deere & Co.'s earnings outlook is uncertain in the near term due to the ongoing economic headwinds. However, the company remains optimistic about the long-term demand for its equipment. * "We believe that the long-term fundamentals of our business remain strong," said John May, Deere's chairman and CEO. "Farmers will continue to need our products to meet the growing global demand for food."
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