Deere & Company has closed out its 2021 fiscal year with a strong fourth quarter that wraps up a year in which the company more than doubled its net income from its fiscal year 2020.
Deere ended its fiscal fourth quarter on October 31, 2021, reporting a net income in the three months previous of $1.283 billion, up from $757 million in the three months ending November 1, 2020. Through the full 2021 fiscal year, net income was $5.963 billion, compared to $2.751 billion in fiscal 2020.
Worldwide, net sales and revenues were up 16 percent in the fourth quarter, reaching $11.327 billion, and for the full year rose 24 percent, to $44.024 billion. Equipment operations net sales in the quarter were $10.276 billion, and $39.737 billion over the year, both well up from 2020 numbers.
"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," said John C. May, chairman and chief executive officer. "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."
Deere's Construction & Forestry division saw sales increase in the fourth quarter by 14 percent from 2020, reaching $2.806 billion, thanks to higher shipment volumes and price realization.
Net income attributable to Deere & Company for fiscal 2022 is forecasted to be in a range of $6.5 billion to $7.0 billion.
"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," May said. "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."
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