Brent Norwood is the Manager of Investor Communications.
"This year, our net income was reduced - higher production costs as our materials have increased significantly. In addition to that, we had the first three and-a-half weeks of the year were unfavorably impacted by a delayed ratification of our labor agreement with the UAW."
He's referring to the strike that lasted about five weeks last fall.
Sales for the first quarter rose 5 per cent, to 9.5 billion dollars, including a three per cent increase for Construction and Forestry, and 9 per cent for large farm equipment.
Norwood says Deere is optimistic about this year - despite lower government pandemic relief payments, global grain prices are rising.
"Ultimately while our customer base was very appreciative of those government payouts during that period of uncertainty, they would much rather have better underlying economic fundamentals which is what they have today."
As a result, Deere has raised its profit projection for the full year - to between 6.7 and 7.1 billion dollars, up more than 100 million dollars from its forecast in November at the beginning of its fiscal year.