Quad Cities-based farm and construction equipment maker Deere & Co. says it earned more in the first nine months of its 2021 fiscal year than it did in its full year record for the 2013 financial year.
Deere, which released its third quarter results on Friday, said its net profit for the nine months ending Aug. 2 was nearly $ 4.7 billion. Revenue for fiscal 2013 was $ 3.5 billion.
Analysts say that rising corn and soybean prices are pushing up demand for Deere farm equipment, as it did in 2013. Growing demand for new homes and the expected increase in construction of bridges, roads and other infrastructure are also increasing sales of other Deere equipment.
Deere said global sales for nine months reached $ 32.7 billion. Annual revenue was $ 35.6 billion in 2013, according to company records.
CEO John May said the company, headquartered in Moline, Ill., Expects demand for equipment “to continue to benefit from favorable fundamentals.”
Deere raised its profit forecast on Friday to $ 5.7 billion to $ 5.9 billion for the year, from $ 5.3 billion to $ 5.7 billion expected in the second quarter.
Third-quarter net income was $ 1.7 billion, more than double the amount for the same quarter a year ago. Sales soared to $ 11.5 billion, 27% more than a year earlier.
Among the results: Third-quarter farm equipment sales climbed 29% to nearly $ 4.3 billion from a year earlier, and construction and forestry equipment sales climbed 38% to reach $ 3 billion.
May said the company posted strong results despite “significant pressure on the supply chain.”
Deere said each quarter of this year has set new quarterly profit records. The company earned $ 1.2 billion in the first quarter and nearly $ 1.8 billion in the second quarter.
The company employs approximately 7,200 production workers at facilities in Iowa which include factories in Davenport, Des Moines, Dubuque, Ottumwa and Waterloo. The company started contractual negotiations with the UAW on a new contract
Deere said employee severance packages that resulted in a charge of $ 138 million affected profits last year.
In a call with analysts, executives at Deere said on Friday that the company is investing heavily in the automation of agricultural and construction equipment, highlighting the growing shortage of skilled workers. Earlier this month, Deere bought Bear Flag Robotics, a Silicon Valley-based startup that develops autonomous driving technology, for $ 250 million.
Donnelle Eller covers agriculture, environment and energy for the Registry. Contact her at [email protected] or 515-284-8457.