Deere & Co. said net sales for fiscal year 2021 were $44.0 billion, up 24 percent compared to 2020 when sales were $35.5 billion. Net sales from equipment operations 19 percent to $10.3 billion, with construction and forestry contributing sales of $2.8 billion.
Net income for the year was $6.0 billion, up from $2.8 billion reported in fiscal year 2020, an increase of 117 percent.
The financial report comes a week after Deere settled a 35-day labor strike. Read about the details of the new Deere labor agreement here.
“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,” said John C. May, chairman and CEO, in a prepared statement. “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.”
Sales in the construction and forestry sector rose in the fourth quarter to $2.8 billion, up 14 percent from the $2.5 billion recorded in Q4 2020. The company attributed the gain to “higher shipment volumes and price realization.” Operating profit also grew in the quarter to $270 million, up 38 percent from Q4 2020. The company noted increases in production costs as negative factors.
For 2022, the company expects sales of construction equipment and compact construction equipment to increase 5 to 10 percent in the United States and Canada.
“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.”
