Net sales for 2023 YTD were approximately $10.6 billion, an increase of 21.2% year-over-year. Excluding unfavorable currency translation impacts of 0.7%, net sales for the first 9 months of 2023 increased 21.9% compared to the same period in 2022.

Net sales in the North American region increased 21.9% in the first 9 months of 2023 compared to the same period of 2022, excluding the negative impact of currency translation. The growth resulted primarily from increased sales of high-horsepower tractors, application equipment and combines along with the positive effects of pricing to mitigate inflationary cost pressures.

North America retail tractor sales declined approximately 2% in the first nine months of 2023 compared to last year. The decline was driven by weaker sales in smaller tractors partially offset by improved sales of high-horsepower tractors, which increased approximately 10% in the first 9 months of 2023 compared to the same period in 2022. North America industry retail tractor demand for 2023 is expected to be down modestly compared to 2022. Industry retail sales for combines in North America increased significantly in the first 9 months of 2023 compared to 2022, due mainly to improving supply chains.

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Operating income (loss) was ($24.2) million ($120.8 million or 11.5% of net sales adjusted) compared to $110 million or 10% of net sales in 2022 ($114.1 million or 10.6% of net sales adjusted).

President and Chief Executive Officer Avner M. Applbaum commented, “As expected, North America agriculture sales decreased year-over-year due to continued muted farmer sentiment and third quarter 2022 benefited from the ongoing delivery of elevated backlog. I’m very pleased with our reduction in inventory which helped deliver strong operating cash flows.”

Agriculture Segment

In the Agriculture segment, sales were $298.5 million, decreased 8.8% year-over-year as higher international sales were more than offset by lower sales in North America. Sales of agriculture technology products and services globally were similar to last year.

In North America, the sales decrease was primarily driven by lower irrigation equipment sales volumes. Farmer sentiment remained somewhat muted during the quarter and the third quarter of 2022 benefited from the ongoing delivery of elevated backlog. Average irrigation equipment selling prices were comparable with last year.

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Third Quarter 2023 Financial Highlights

• Revenue of $957.3 million, up 8% on a year-over-year basis, up 2% year-over-year on an organic basis
• Annualized recurring revenue (“ARR”) was $1.94 billion, up 25% year-over-year, up 13% on an organic basis
• GAAP operating income was $121.3 million and non-GAAP operating income was $251 million
• GAAP net income was $74.9 million and non-GAAP net income was $170.2 million
• Adjusted EBITDA of $268.2 million, 28% of revenue

Forward Looking Guidance

For the full-year 2023, Trimble now expects to report revenue between $3,757 million and $3,797 million.

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Worldwide net sales and revenues increased 12 percent, to $15.801 billion, for the third quarter of 2023 and rose 24 percent, to $45.839 billion, for nine months. Net sales were $14.284 billion for the quarter and $41.765 billion for nine months, compared with $13.000 billion and $33.565 billion last year.

Company Outlook & Summary

Net income attributable to Deere & Company for fiscal 2023 is forecast to be in a range of $9.75 billion to $10.00 billion.

“Deere is well on the way to another year of exceptional achievement due in large part to positive fundamentals in the farm and construction sectors and the unwavering commitment of the Deere team, including our dealers and suppliers,” May said. “Fundamentals are expected to continue fueling solid demand for our equipment, supported by a strong advance-order position. At the same time, through the company’s smart industrial operating model, we are delivering differentiated value to our customers, enabling them to do their jobs more profitably and sustainably.”

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