Deere & Co. said its fiscal fourth-quarter profit jumped 69% on strong sales of its agricultural and construction equipment despite a one-month strike that began near the end of the period.
Deere & Co. said its fiscal fourth-quarter profit rose 69% on strong sales of its agricultural and construction equipment, despite a month-long strike that began with ongoing supply chain problems near the end of the period. Hui.
Illinois-based company Moline said Wednesday it earned $1.28 billion, or $4.12 per share, for the quarter ended Nov. That’s up from $757 million, or $2.39 per share, a year ago, when the pandemic slowed sales and layoffs. -Related expenses hurt the bottom line.
The results topped Wall Street’s expectations. Nine analysts surveyed by Zacks Investment Research had an average estimate for earnings of $3.82 per share.
The farm equipment maker said its revenue rose 16% to $11.33 billion in the period. Its adjusted revenue was $10.28 billion, which missed Street forecasts. Five analysts surveyed by Zacks expected $10.34 billion.
Deere CEO John May said in a statement, “Our results reflect our ability to continue to serve customers while managing strong end-market demand and supply-chain issues and conducting contract negotiations with our largest consortium. Huh.”
More than 10,000 Deer workers were on strike at plants in Iowa, Illinois and Kansas from mid-October to last week, when the United Auto Workers union accepted the company’s third offer that included a 10% immediate increase and an $8,500 ratification bonus. Was.
Deere executives estimated that the new contract would increase its pretax cost by about $250 million to $300 million a year, but it wouldn’t make a significant dent in its profits.
In fiscal 2021, the company reported a record profit of $5.96 billion, or $18.99 per share. Revenue was $39.74 billion. That bottom-line figure tops even Deere’s most optimistic forecast.
Next year, Deere predicts that its profits will rise even more to between $6.5 billion and $7 billion as demand for its iconic green tractors remains high and infrastructure spending will help fuel demand for its construction equipment. does. The company said Deere may resume production next year due to existing supply chain problems, which is likely to exceed demand.
Deere’s stock jumped nearly 5.5 per cent to $368.43 in afternoon trading on Wednesday after the results were announced.
Elements of this story were produced by Automated Insights (http://automatedinsights.com/ap) using data from Jacques Investment Research. DE at https://www.zacks.com/ap/DE . Access Jax Stock Reports at