Despite revising downwards its full year profit forecast, Deere and Co is looking ahead to a favourable 2023, according to the Illinois-based machinery manufacturer.

The company based the outlook on the strong response it has received to its early order programmes.

Deere’s full year earnings were revised down to between $7bn and $7.2bn from its previous forecast of $7bn to $7.4bn, as a result of increased costs and supply chain disruptions.

Despite a 25% increase in third quarter net sales, net income of $1.9bn was reported to be below analysts’ expectations.

“Our results reflected higher costs and production inefficiencies driven by the difficult supply-chain situation,” said John May, Deere chairman and chief executive.

May noted that the company is working closely with its factories and suppliers to meet next year’s higher level of customer demand.