The construction and farm sectors continue to power growth for Deere & Company, which reported a major increase in net income for its third quarter of fiscal 2023. Worldwide growth in net sales and revenues, among other improvements, have pushed the company to increase its full-year net income forecast.
Net income in Deere's fiscal third quarter, ending July 30, 2023, totaled $2.978 billion, a 58 percent increase over the same period in 2022, when the company recorded $1.884 billion. Through the first nine months of the fiscal year, Deere & Company has recorded $7.797 billion in net income, compared to $4.885 billion in fiscal 2022.
Worldwide, Deere's net sales and revenues increased 12 percent, to $15.801 billion, for the third quarter, driving the nine-month total to $45.839 billion, a 24 percent increase.
"Reflected by our strong third-quarter results, Deere continues to benefit from favorable market conditions and an operating environment showing further improvement," said John C. May, chairman and chief executive officer. "We are also being helped by stabilizing conditions in the supply chain, the sound execution of our business plans, and an improving ability to meet demand for our products and serve customers."
The Construction & Forestry segment saw net sales of $3.739 billion, an increase of 14 percent over 2022, with operating profit of $716 million, a 39 percent rise. Deere cited price realization and higher shipment volumes as drivers of the increases in the segment.
With nine months in the books, Deere & Company has increased its full-year forecast, with expectations now showing a net income of between $9.75 and $10 billion.
"Deere is well on the way to another year of exceptional achievement due in large part to positive fundamentals in the farm and construction sectors and the unwavering commitment of the Deere team, including our dealers and suppliers," May said. "Fundamentals are expected to continue fueling solid demand for our equipment, supported by a strong advance-order position. At the same time, through the company's smart industrial operating model, we are delivering differentiated value to our customers, enabling them to do their jobs more profitably and sustainably."
