Deere & Company (DE) Q1 2023 Earnings Call Transcript

Deere & Company (NYSE:DE) Q1 2023 Earnings Conference Call February 17, 2023 10:00 AM ET

Company Participants

Brent Norwood - Director, Investor Relations

Rachel Bach - Manager, Investor Communications

Josh Jepsen - Chief Financial Officer

Conference Call Participants

Seth Weber - Wells Fargo Securities

Dillon Cumming - Morgan Stanley

John Joyner - BMO Capital Markets

Tim Thein - Citigroup

Stephen Volkmann - Jefferies

David Raso - Evercore ISI

Michael Feniger - Bank of America

Jamie Cook - Credit Suisse

Mircea Dobre - Baird

Tami Zakaria - JPMorgan

Jerry Revich - Goldman Sachs

Kristen Owen - Oppenheimer

Mike Shlisky - D.A. Davidson

Brent Norwood

[Abrupt Start] any other use, recording or transmission of any portion of this copyrighted broadcast without the express written consent of Deere is strictly prohibited. Participants in the call, including the Q&A session, agree that their likeness and remarks in all media may be stored and used as part of the earnings call.

This call includes forward-looking comments concerning the company’s plans and projections for the future that are subject to important risks and uncertainties. Additional information concerning factors that could cause actual results to differ materially is contained in the company’s most recent Form 8-K and periodic reports filed with the Securities and Exchange Commission. This call also may include financial measures that are not in conformance with accounting principles generally accepted in the United States of America, GAAP. Additional information concerning these measures, including reconciliations to comparable GAAP measures is included in the release and posted on our website at johndeere.com/earnings under Quarterly Earnings and Events.

I will now turn the call over to Rachel Bach.

Rachel Bach

Thanks, Brent and good morning. John Deere completed the first quarter with solid execution. Financial results for the quarter included 20% margin for the equipment operations. While still far from normal levels, fewer supply chain disruptions enabled our factories to operate at high levels of production. Strong ag fundamentals remain – our order book still in allocation are full well into the fourth quarter and in some cases, full through the balance of the year. Likewise, the Construction & Forestry division continues to benefit from healthy demand with order books full into the fourth quarter and orders still on an allocation basis.

Slide 3 shows the results for the first quarter. Net sales and revenues were up 32% to $12.652 billion, while net sales for the equipment operations were up 34% to $11.402 billion. Net income attributable to Deere & Company was $1.959 billion or $6.55 per diluted share.