Agricultural, commercial and residential equipment maker Deere & Company (DE:NYSE) today announced financial results for the first quarter of 2021 ended January 31, 2021.
The company reported that in Q2/21, total worldwide net sales and revenues increased by 19% to $9.112 billion. The firm stated that the largest component of the revenues were from equipment operations net sales, which were $8.051 billion in Q1/21, compared to $6.530 billion in Q1/20. The balance of revenues recorded was derived mostly from financing and leasing operations.
Deere & Co advised that for Q1/21 it posted net income of $1.224 billion, or $3.87 per share, compared with net income of $517 million, or $1.63 per share in Q1/20.
The company's Chairman and CEO John C. May stated, "John Deere started 2021 on a strongly positive note...Our results were aided by outstanding performance across our business lineup and improving conditions in the farm and construction sectors. In addition, our smart industrial operating strategy is making a significant impact on the company's results while it also helps our customers be more profitable and sustainable."
Deere & Co also advised that due to improved conditions in agricultural and construction sectors that are setting the stage for a year of strong performance in 2021, it has raised its earnings forecast and stated that it expects FY/21 net income will be in the range of $4.6 billion to $5.0 billion.
"We are proud of our success executing the strategy and creating a more focused organization that can operate with greater speed and agility...As our recent performance shows, these steps are leading to improved efficiencies and helping the company target its resources and investments on areas that have the greatest impact. At the same time, even as we ramp up factory production and intensify our efforts to serve customers, we are mindful of the continuing challenges associated with the global pandemic. We remain committed, above all else, to safeguarding the health and well-being of our employees," CEO May added.
Deere & Co is based in Moline, Ill., and is engaged in the manufacturing, sale and financing of equipment used in commercial agriculture, turf maintenance, construction and forestry. The global equipment firm is organized into three primary business segments: The first of these is the agriculture and turf segment, which makes and distributes its line of agriculture and turf equipment along with individualized replacement service parts. The second business segment manufactures and globally distributes construction equipment and forestry machines and attachments. The third operating business division provides financing and leasing via company dealers for larger new and used agriculture, construction and forestry equipment. In addition, to commercial financing activities, the firm also offers wholesale financing to dealers and finances retail customers purchases by offering revolving charge accounts and offers extended warranties for products purchased.
Deere & Co began the day with a market cap of around $94.4 billion with approximately 314.4 million shares outstanding. DE shares opened more than 6.5% higher today at $320.00 (+$19.75, +6.58%) over yesterday's $300.25 closing price and mowed their way to a new 52-week high this morning of $335.21. The stock has traded today between $315.87 and $335.21 per share and is currently trading at $332.38 (+$32.13, +10.70%).
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