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May 02, 2021

Deere Q2 2021 Earnings Report

Deere reported strong Q2 2021 earnings driven by increased net sales and revenues, reflecting robust market conditions and broad improvements across divisions and geographies.

Key Takeaways

Deere & Company reported a net income of $1.790 billion for the second quarter ended May 2, 2021, a significant increase compared to the previous year. Worldwide net sales and revenues increased by 30 percent, reaching $12.058 billion. The company has raised its full-year earnings forecast to a range of $5.3 billion to $5.7 billion.

Second-quarter earnings increased due to a 34% rise in net sales, indicating strong market conditions and widespread improvement across divisions and geographies.

The equipment division's operating margin of 19.5% demonstrates solid execution and the impact of the company's strategy.

Deere is facing increased supply-chain pressures throughout the year but is actively working with suppliers to mitigate these challenges.

Full-year earnings forecast has been raised to a range of $5.3 to $5.7 billion, reflecting confidence in the company's performance.

Total Revenue
$12.1B
Previous year: $9.25B
+30.3%
EPS
$5.68
Previous year: $2.11
+169.2%
Operating Margin
19.5%
Previous year: 13.3%
+46.6%
Gross Profit
$3.88B
Previous year: $2.78B
+39.6%
Cash and Equivalents
$7.18B
Previous year: $8.9B
-19.3%
Free Cash Flow
$1.48B
Previous year: $1.11B
+32.6%
Total Assets
$79B
Previous year: $77.3B
+2.1%

Deere

Deere

Deere Revenue by Segment

Forward Guidance

Net income attributable to Deere & Company for fiscal 2021 is forecast to be in a range of $5.3 billion to $5.7 billion.

Challenges Ahead

  • Deere expects to see increased supply-chain pressures through the balance of the year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income