Deere & Co. (NYSE: DE) posted second-quarter results Friday that missed analysts’ earnings expectations. Nevertheless, the company boosted its full-year profit forecast as it expects farm equipment demand to outpace inflation and supply-chain disruptions.
The American corporation reported earnings of USD6.81 per share, compared to the expected USD6.71 a share. Meanwhile, revenue amounted to USD12.03 Billion, lower than analysts anticipated USD13.2 Billion.
“Deere’s second-quarter performance reflected a continuation of strong demand even as we face supply-chain pressures affecting production levels and delivery schedules,” said John C. May, chairman, and chief executive officer. “Deere employees, suppliers, and dealers are working hard to address these challenges. We are proud of their extraordinary efforts to get products to our customers as soon as possible under the challenging circumstances.”
Furthermore, the company forecasts its 2022 fiscal year’s net income will range between USD7 Billion and USD7.4 Billion, a rise from its prior estimate of USD6.7 Billion and USD7.1 Billion.
“Looking ahead, we believe demand for farm equipment will continue benefiting from positive fundamentals in spite of availability concerns and inflationary pressures affecting our customers’ input costs,” May added. “The company’s smart industrial strategy and recently announced Leap Ambitions are focused on helping customers manage higher costs and increasingly scarce inputs while improving their yields, through the use of our integrated technologies.”