Deere & Co. continued to rake in record profits this fall, and the company expects to make even more money next year.

The agriculture and construction equipment maker disclosed Wednesday morning that the company earned a $2.25 billion profit for the quarter that ended Oct. 30, led by continued strong demand from farmers and builders. Deere also benefited from shippers catching up on old parts orders, allowing the company to finish and sell about $400 million worth of machines that had sat partially built in parking lots, waiting for their final components.

The quarter capped off a fiscal year when Deere earned a profit of $7.13 billion, the company's second straight record year. The company's earnings have increased since 2021, as farmers looking to trade in old tractors, combines and sprayers have taken advantage of increased revenue from high corn and soybean prices.

On Wednesday, executives offered an even rosier picture for the current fiscal year, which started Oct. 31. The company's bosses project Deere will set another record, earning $8 billion to $8.5 billion.

"We haven't seen a drop in demand," investor relations director Brent Norwood told analysts Wednesday morning. "Demand just continues to outstrip supply."

The company recorded $15.54 billion in net sales and $7.44 earnings per share last quarter, beating analysts' expectations, according to FactSet. Deere stock traded at $439 a share Wednesday afternoon, up 5% for the day. The company's stock is up 26% for the year, one of the best performances in the country.

Executives told analysts that they expect grain prices to remain high for "the next couple of growing seasons" because farmers and shippers in Ukraine won't be able to grow or move as many commodities amid the war with Russia. They added that many farmers want to buy new machines that they passed on in previous years, due to a weaker ag economy at the time or the more recent supply chain crisis.

The company said suppliers managed to provide parts faster during the quarter than ran from August through October, and executives expect to pay lower shipping costs next year. They added that the cost of hot-rolled coil steel has dropped, allowing them to build machines at a lower cost.

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Compared to its most recent fiscal year, company executives expect sales of large ag equipment to increase 15-20% through next October. When Deere allowed North American customers to order combines for most of next year in August, buyers filled up the company's order book in two months, CEO John May said Wednesday. He added that the process usually takes five months.

"We'll produce more large ag equipment in 2023 than we did in 2022," he said. "And not just more equipment but more value per machine."

The company has managed to more than pass on increased parts costs to buyers. The large ag equipment segment recorded a $1.74 billion operating profit in its most recent quarter, up 124% from last year.

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The smaller ag and turf equipment segment's operating profit increased 46% to $506 million. The construction and forestry equipment segment's operating profit increased 53% to $414 million.

The company operates factories in Ankeny, Davenport, Dubuque, Ottumwa and Waterloo. The United Auto Workers represent about 7,400 members at those sites.

However, Deere executives announced this year that they are moving production of some machines from Dubuque, Ottumwa and Waterloo to Mexican factories. The company has not said how many Iowa positions it will cut as a result.

The trade publication Steel Orbis reported Monday that Deere will hire 400 workers at Mexican factories to build skid steers and mower conditioners — operations that employees in Dubuque and Ottumwa have previously handled.

Deere spokesperson Daniel Bernick said Wednesday that the Mexico expansion will not impact headcount at the Dubuque factory, but executives still do not know how many positions they will cut in Ottumwa. The company typically employs 90 workers for mower production at the southeast Iowa factory, jobs that are theoretically in jeopardy.

Tyler Jett covers jobs and the economy for the Des Moines Register. Reach him at tjett@registermedia.com, 515-284-8215, or on Twitter at @LetsJett.

This article originally appeared on Des Moines Register: John Deere posts record profits, predicts another record year in 2023