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Jan 31, 2021
Deere Q1 2021 Earnings Report
Deere's first-quarter net income more than doubled, driven by a 23% increase in net sales, reflecting the successful execution of its new operating strategy.
Key Takeaways
Deere & Company reported a strong start to 2021, with net income reaching $1.224 billion for the first quarter, a significant increase from $517 million in the same period last year. This performance was supported by a 19% increase in worldwide net sales and revenues, totaling $9.112 billion.
First-quarter net income more than doubled due to a 23% gain in net sales, showcasing the successful implementation of the new operating strategy.
Improved conditions in the agricultural and construction sectors are setting the stage for a year of robust performance.
The company's smart industrial operating strategy is significantly impacting results, aiding customer profitability and sustainability.
Full-year earnings forecast has been increased to a range of $4.6 to $5.0 billion.
Deere
Deere
Deere Revenue by Segment
Revenue by Segment
Production & Precision Ag Revenue
CapyFin.comSmall Ag & Turf Revenue
CapyFin.comConstruction & Forestry Revenue
CapyFin.com Forward Guidance
Net income attributable to Deere & Company for fiscal 2021 is forecast to be in a range of $4.6 billion to $5.0 billion.
Positive Outlook
- Full-year 2021 results are expected to benefit from income earned from a higher average portfolio.
- Full-year 2021 results are expected to benefit from lower losses on lease residual values.
- Full-year 2021 results are expected to benefit from favorable financing spreads.
- U.S. & Canada Large Ag is expected to be up 15 to 20%.
- Global Forestry is expected to be up 5 to 10%.
Challenges Ahead
- Asia is expected to be down slightly.
- Uncertainties related to the magnitude and duration of the COVID pandemic may significantly adversely affect the company’s business and outlook.
- Significant changes in market liquidity conditions and changes in the company’s credit ratings could impact access to funding and funding costs.
- A debt crisis, in Europe or elsewhere, could negatively impact currencies, global financial markets, social and political stability.
- The withdrawal of the United Kingdom from the European Union may adversely affect business activity, political stability and economic conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income