In This Article:
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Deere & Co (NYSE:DE) announces a 43% increase in net income for the fiscal year 2023.
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Fourth-quarter net sales slightly down by 1%, with net income rising by 5%.
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Construction & Forestry segment sees notable 11% sales increase and 25% operating profit boost in Q4.
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Fiscal 2024 net income forecasted to be between $7.75 billion and $8.25 billion.
On November 22, 2023, Deere & Co (NYSE:DE) released its 8-K filing, detailing a robust performance for the fiscal year 2023, with net income reaching $10.166 billion, a significant increase from the previous year's $7.131 billion. This translates to a 43% year-over-year rise in net income, showcasing the company's strong profitability despite a challenging economic landscape.
Fiscal Year 2023 Financial Highlights
Deere & Co (NYSE:DE) reported a slight decrease in worldwide net sales and revenues for the fourth quarter, down 1% to $15.412 billion, while the full-year figures showed a 16% increase to $61.251 billion. The dip in quarterly sales was offset by a 5% increase in net income for the same period, demonstrating the company's ability to maintain profitability amidst fluctuating sales figures.
Segment Performance
The Construction & Forestry segment stood out with an 11% increase in net sales and a 25% jump in operating profit during the fourth quarter, attributed to price realization and higher shipment volumes. However, the Production & Precision Agriculture and Small Agriculture & Turf segments experienced declines in net sales by 6% and 13%, respectively, primarily due to lower shipment volumes.
Looking Ahead
Looking forward, Deere & Co (NYSE:DE) forecasts net income for fiscal 2024 to be in the range of $7.75 billion to $8.25 billion. Chairman and CEO John C. May emphasized the company's commitment to disciplined execution and strategic investments in customer-driven solutions, aiming to enhance through-cycle structural profitability and resilience.
Financial Services and Special Items
The Financial Services segment saw a decrease in net income by 18% for the quarter, influenced by unfavorable derivative valuation adjustments and a higher provision for credit losses. The segment's fiscal 2024 net income is expected to improve, driven by income on a higher average portfolio, despite anticipated challenges with financing spreads and operating-lease residual values.
Deere & Co (NYSE:DE) also reported several special items affecting the financial results, including the sale of its Russian roadbuilding business and a correction in the accounting treatment for financing incentives offered to John Deere dealers.