Deere Announces Record Earnings, A Gloomy Forecast, and a New President
Deere & Co. recently reported its results for Q4 2023 (the company’s fiscal year ends in October), and it claimed another year of record performance with strong earnings for the quarter and the fiscal year. The company reported net income of $2.369 billion for the fourth quarter ended Oct. 29, compared with net income of $2.246 billion, for the quarter ended Oct. 30, 2022. For fiscal-year 2023, Deere reported net income of $10.166 billion, well up from $7.131 billion in fiscal 2022.
“Deere’s fourth-quarter and full-year results can be attributed to the successful execution of our Smart Industrial Operating Model and the value that customers recognize in our industry-leading products and solutions,” John C. May, chairman and chief executive officer, said in a news release. “We must also recognize and credit our dedicated employees, dealers, and suppliers, whose hard work and focus have been instrumental to our overall success.”
The company stopped the good financial news there and provided a gloomy outlook for 2024. Deere expects higher interest rates and declining farm income could negatively impact sales. The USDA predicts that farm income for 2023 will suffer its sharpest decline in history.
Deere forecasts net income for fiscal 2024 to be in a range of $7.75 billion to $8.25 billion, a drastic decline from the nearly $10+ billion for fiscal 2023.
New President
Deere & Company named Deanna Kovar as its new President of Worldwide Agriculture and Turf, Small Ag and Turf, and Regions 1 and 2, which include the company’s presence in Asia, Africa, and Europe. She replaces Mark von Pentz who is retiring.
In this role, Kovar will be responsible for the overall management and performance of the company’s Small Ag and Turf business, as well as John Deere’s performance in these markets. Kovar previously served as vice president, Production and Precision Ag since 2020, where she led a global team focused on delivering equipment and technology solutions that help ag operators be more productive, profitable, and sustainable.
Kovar joined Deere in 2000 and spent most of her career in positions in channel and product management, where she gained a deep understanding of ag customers’ requirements. She has developed an extensive background in precision technologies, beginning with her move in 2010 to the company’s Intelligent Solutions Group as Manager of Portfolio Management.
“Deanna and her team will play an instrumental role in advancing our smart industrial strategy to deliver enhanced customer value in the Small Ag and Turf markets, as well as in Regions 1 & 2,” said John May, Chief Executive Officer for Deere & Company. “Her deep customer understanding, professional background in channel and product management, keen business insights, and record of consistent success make Deanna well-qualified for her new role.”
