Deere & Company stock was rising today (Nov. 24) after the Moline, Illinois-based ag manufacturer, with operations in Dubuque and Waterloo, reported net income of $1.283 billion, with $4.12 in earnings per share, for the fourth quarter ended Oct. 31.
The report showed substantial gains over the fourth quarter of 2020, when Deere reported net income of $757 million, or $2.39 per share.
Group worldwide sales rose 16% from last year to $11.33 billion, Deere reported.
Analysts surveyed by The Street had projected earnings per share of $3.90 and worldwide sales of $10.44 billion.
Looking ahead, Deere projected net income of $6.5 billion to $7 billion for the 2022 fiscal year and said the projection reflected “healthy demand” for Deere products and services.
“Looking ahead, we expect demand for farm and construction equipment to continue benefiting from positive fundamentals, including favorable crop prices, economic growth, and increased investment in infrastructure,” said John C. May, chairman and chief executive officer of Deere & Company. “At the same time, we anticipate supply-chain pressures will continue to pose challenges in our industries. We are working closely with our suppliers to address these issues and ensure that our customers can deliver essential food and infrastructure more profitably and sustainably.”
In its earnings news release, Deere also touted its Nov. 17 labor agreement with the United Auto Workers union, ending a five-week strike.
“Deere’s strong fourth-quarter and full-year performance was delivered by our dedicated employees, dealers, and suppliers throughout the world, who have helped safely maintain our operations and serve customers,” Mr. May said. “Our results reflect strong end-market demand and our ability to continue serving customers while managing supply-chain issues and conducting contract negotiations with our largest union. Last week’s ratification of a 6-year agreement with the UAW brings our highly skilled employees back to work building the finest products in our industries. The agreement shows our ongoing commitment to delivering best-in-class wages and benefits.”
As of midday Nov. 24, Deere & Company stock was up 6.2% at $370.88 per share.