Deere sales and revenues down 12 percent

Deere & Company reported on May 16 that worldwide net sales and revenues decreased 12 percent, to $15.235 billion, for the second quarter of 2024 and decreased 9 percent, to $27.420 billion, for six months. Net sales were $13.610 billion for the quarter and $24.097 billion for six months, compared with $16.079 billion and $27.481 billion last year.

“John Deere’s second-quarter results were noteworthy in light of continued changes across the global agricultural sector,” stated John C. May, chairman and chief executive officer. “Thanks to the dedication and hard work of our team, we continue to demonstrate structurally higher performance levels across business cycles and are benefitting from stability in construction end markets amid declining agricultural and turf demand.”

• Small agriculture and turf net sales decreased 23% for the quarter compared to the same quarter last year. 
• Construction and forestry sales decreased for the quarter due to lower shipment volumes. 
• Production and precision agriculture sales decreased 16% for the quarter as a result of lower shipment volumes.
• Financial services net income for the quarter increased due to income earned on higher average portfolio balances, partially offset by a higher provision for credit losses and less-favorable financing spreads. The results of the prior period were also affected by a correction of the accounting treatment for financing incentives offered to John Deere dealers.
• “Quarterly results underscore sound execution in the face of challenging market conditions.
• Global agricultural and turf demand further softens while the construction industry remains stable.
• Full-year net income forecast updated to approximately $7.0 billion.

Deere & Company reported net income of $2.370 billion for the second quarter ended April 28, 2024, or $8.53 per share, compared with net income of $2.860 billion, or $9.65 per share, for the quarter ended April 30, 2023. For the first six months of the year, net income attributable to Deere & Company was $4.121 billion, or $14.74 per share, compared with $4.819 billion, or $16.18 per share, for the same period last year.

Company Outlook & Summary

Deere reports that its outlook for its Small Ag and Turf business segment is a decrease of 20 to 25 percent. Net income attributable to Deere & Company for fiscal 2024 is forecasted to be approximately $7.0 billion. “We are proactively managing our production and inventory levels to adapt to demand changes and position the business for the future,” May explained. “Despite market conditions, we are committed to our strategy and are actively investing in and deploying innovative technologies, products, and solutions to ensure our customers’ success.