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Oct 31, 2021

Deere Q4 2021 Earnings Report

Deere's fourth-quarter net income increased due to a 19% rise in net sales, showcasing strong execution and the advantages of the operating model. The UAW contract agreement demonstrated a commitment to Deere's workforce.

Key Takeaways

Deere & Company reported a strong fourth-quarter performance with net income of $1.283 billion, or $4.12 per share, compared to $757 million, or $2.39 per share, for the quarter ended November 1, 2020. Worldwide net sales and revenues increased 16 percent to $11.327 billion.

Fourth-quarter net income rose on net sales gain of 19%, demonstrating solid execution and benefits of operating model.

UAW contract agreement shows commitment to Deere’s workforce.

Full-year 2022 earnings forecast to be $6.5 to $7.0 billion, reflecting healthy demand.

Deere's strong fourth-quarter and full-year performance was delivered by dedicated employees, dealers, and suppliers throughout the world, who have helped safely maintain our operations and serve customers

Total Revenue
$11.3B
Previous year: $8.66B
+30.8%
EPS
$4.12
Previous year: $2.39
+72.4%
Operating Margin
0.17%
Previous year: 13.9%
-98.8%
Gross Profit
$3.3B
Previous year: $3.06B
+7.8%
Cash and Equivalents
$8.02B
Previous year: $7.07B
+13.5%
Free Cash Flow
$3.06B
Previous year: $3.2B
-4.5%
Total Assets
$84.1B
Previous year: $75.1B
+12.0%

Deere

Deere

Deere Revenue by Segment

Forward Guidance

Net income attributable to Deere & Company for fiscal 2022 is forecasted to be in a range of $6.5 billion to $7.0 billion.

Positive Outlook

  • 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

Challenges Ahead

  • 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income