CEO notes higher revenue amidst supply challenges, agreement with UAW.
Deere & Company (DE), based in Moline, Ill., reported fourth quarter net income rise on net sales gains amidst supply chain challenges and contract negotiations with its largest union, including ratification of a 6-year agreement with the UAW.
The company reported for Q4 ended Oct. 31, 2021, worldwide net sales and revenues increased 16% to $11.327 billion, and rose 24%, to $44.024 billion, for the full year.
Deere & Company reported net income increase of 19% to $1.283 billion for Q4, compared with net income of $757 million, for previous quarter 2020. For fiscal year 2021, net income attributable to Deere was $5.963 billion, compared with $2.751 billion, in fiscal 2020.
Production and precision agriculture sales increased for the quarter due to higher shipment volumes and price realization, Deere said. Operating profit rose primarily due to price realization and improved shipment volumes / mix. These items were partially offset by higher production costs. Results for fourth-quarter 2020 were negatively impacted by employee-separation expenses.
The Bottom Line: Deere & Company sales moved ahead 16% worldwide for fiscal year end, noting a 19% increase in profits, with UAW contract agreement showing commitment to Deere’s workforce.
What the CEO said: “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. “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. The agreement shows our ongoing commitment to delivering best-in-class wages and benefits.”
Company info: Click here to read the full financial report from Deere & Company.