John Deere revenues rebound strongly

Deere & Company has seen worldwide net sales and revenues increase 30% in the second quarter of this year to US$12.058 billion, putting it on track for a 25% rise over 6 months.

Markets for both farm and construction equipment remain strong but the company said it may run into supply chain pressures over the remainder of the year.

John C. May, chairman and chief executive officer, said the company was working closely with key suppliers to secure the parts and components it needed.

Production and precision agriculture sales increased for the quarter due to higher shipment volumes and price realisation.

Small agriculture and turf sales for the quarter increased due to higher shipment volumes, price realisation and the favourable effects of foreign currency translation.

For its industry outlook for 2021, Deere forecasts large ag sales to be up around 25% in the U.S. and Canada, and for small ag sales to be up around 10%. European ag & turf sales are expected to be up around 10%, South America tractor and combine sales are forecast up around 20% and Asia ag & turf sales are expected to be up slightly.

By segment, Deere forecasts both production & precision ag net sales and small ag & turf net sales to increase 25-30%. Production & precision ag price realization is forecast at +7%, while small ag & turf price realisation is forecast at +3%.

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