Deere & Co. CEO John May celebrated “another good year in 2022” and predicted “John Deere’s best days lie ahead” as he kicked off the Moline-based global equipment giant’s annual meeting today, Feb. 22. “Deere’s performance in 2022 offers yet another proof point that our smart industrial strategy and operating model are contributing to our […]
Deere & Co. CEO John May celebrated “another good year in 2022” and predicted “John Deere’s best days lie ahead” as he kicked off the Moline-based global equipment giant’s annual meeting today, Feb. 22.“Deere’s performance in 2022 offers yet another proof point that our smart industrial strategy and operating model are contributing to our strong results,” Mr. May said during the virtual shareholders meeting. Net sales and earnings were the highest in company history in the fiscal year which ended Jan. 30, 2022, at $52.6 billion, while net income was $7.1 billion. Additionally, he said, Deere shareholders realized a total return on their investment of 17% in 2022 compared with a decline in the market overall and since last year’s annual meeting John Deere increased the quarterly dividend rate by a total of 14%.John May“When you put it all together, it was quite a year,” Mr. May said. The year was not without its challenges, however.“Our operations were not immune from the industry-wide supply shortages and logistics challenges,” he said. “In response, our employees rallied together. They boosted production and worked tirelessly to get equipment shipped to our dealers and customers.”John Deere’s chairman, president and CEO also told shareholders that in 2022, “We saw robust demand and achieved outstanding financial results despite supply challenges and rising production costs. We also brought to market important new products with the latest technology and advanced features, introduced a set of focused, measurable goals known as the Leap Ambitions to strengthen our strategic plan, and took steps to make Deere a better place to work and build a career.”Mr. May also focused on the company’s smart industrial strategy and operating model as key reasons for the company's past success and sunny outlook.“Under the strategy, we’re focused on optimizing our customers’ production systems,” he said.“In addition, we’ve improved the efficiency of our tech stack development, put more focus on our business portfolio, and emphasized customer support across the entire lifecycle of our products.”As a result, he said, “Our deep understanding of the way our customers do business gives us unique insights about the challenges they face. This also puts us in a strong position to deliver technological breakthroughs that help customers be more productive and profitable, and do their jobs more sustainably.”
May highlights breakthroughs
This year and last, Deere introduced some of the company’s biggest technological breakthroughs at the Consumer Technology’s CES show in Las Vegas, which bills itself as “The Most Influential Tech Event in the world.” “Just last month, we had the privilege of delivering the opening keynote address at CES, highlighting our progress in robotics and artificial intelligence,” Mr. May said.Those advances include the fully autonomous 8R tractor which Deere introduced last year. “This industry-first technology can perform tillage work in the field without an operator in sight,” Mr. May said Wednesday.He also highlighted Deere’s innovative See & Spray Ultimate Sprayers which “use advanced camera technology and artificial intelligence to distinguish weeds from healthy crop, reducing the use of herbicides and improving yields.”Last month at CES, Deere also unveiled ExactShot plant technology. “Through a combination of the latest sensors and robotics, it applies starter fertilizer precisely to the seed as it is planted, at speeds up to 10 mph,” Mr. May said. “As a result, farmers can reduce the amount of starter fertilizer used by as much as 60% while maintaining speeds needed to get the job done on time.”Also making its first appearance at CES was John Deere’s fully electric excavator designed to reduce site noise, increase safety and productivity and eliminate emissions without compromising power or performance.Deere designed the excavator, which is powered by a Kreisel battery. “Our work with Kreisel – a company in which we acquired a majority position in 2022 – gives us access to patented battery technology that delivers high performance and a longer battery life,” Mr. May said. “Kreisel also leverages charging technology that results in faster and lower-cost connections to the electrical grid, delivering even greater value to the customer.”The Kriesel project is just one of several investments Mr. May said that Deere has made in its efforts to help farmers do more with less, reduce greenhouse gas emission and boost sustainability using battery electric power and biodiesel options. Such fuels can help Deere deliver “financial and sustainable outcomes for our customers and stakeholders,” he added.Looking ahead, Mr. May said, 2023 is shaping up to be a promising year in which agricultural fundamentals are favorable, customer confidence is sound, infrastructure spending is set to rise, equipment inventories are lean, customer fleets are being actively replenished, and levels of demand are expected to continue testing industry capacity.“All in all, I firmly believe John Deere’s best days lie ahead. We’re part of a great company that does great things,” he said. “I’m proud of our 80,000-plus dedicated employees, as well as our many dealers and suppliers.”He added: “We have a real purpose, real technology, and we’re making a real impact. And as I said during our CES keynote – we’re just getting started.”
Deere board re-elected
In addition to Mr. Mays’ annual address, shareholders overwhelmingly approved the re-election of several current Deere & Co. Board of Directors. They are:
Leanne G. Caret, retired executive vice president and senior advisor, The Boeing Co. and former president and CEO of Boeing Defense, Space & Security.
Tamra A. Erwin, retired senior advisor, Verizon Communications, Inc. and former executive vice president and Group CEO, Verizon Business Group.
Alan C. Heuberger, senior investment manager, Cascade Asset Management Co.
Charles O. Holliday, Jr., retired chairman and CEO, DuPont.
Michael O. Johanns, retired U.S. senator from Nebraska; former U.S. Secretary of Agriculture;
Clayton M. Jones, retired chairman and CEO, Rockwell Collins, Inc.
John C. May, chairman, CEO and president, Deere & Co.
Gregory R. Page, chairman, Corteva, Inc.
Sherry M. Smith, former executive vice president and CFO, SuperValue, Inc.
Dimitri L. Stockton, retired special advisor to chairman and senior vice president, GE, and former chairman, president and CEO, GE Asset Management.
Sheila G. Talbon, president and CEO Gray Matter Analytics.
