Deere & Company Reports Decline in 2024 Earnings

Deere & Company ( (DE) ) has released its Q4 earnings. Here is a breakdown of the information Deere & Company presented to its investors.

Deere & Company is a leading global manufacturer of agricultural, construction, and forestry machinery, known for its innovative approach in enhancing customer productivity and profitability. In its latest earnings report, Deere & Company announced a net income of $1.245 billion for the fourth quarter of 2024, down from $2.369 billion in the previous year. The fiscal year net income stood at $7.1 billion, reflecting a 30% decrease compared to 2023. Despite a challenging market environment, the company has made strategic adjustments to align its operations with current market conditions, resulting in a 16% decrease in total net sales and revenues for the year, amounting to $51.716 billion.

Key financial metrics reveal a significant decrease in sales and profits across its major segments. Production and precision agriculture saw a 38% drop in net sales, while small agriculture and turf declined by 25%, and construction and forestry by 29%. Operating profits for these segments also saw substantial declines due to reduced shipment volumes and changes in sales mix, although these were partially offset by lower production costs. Financial services experienced a smaller 9% decline in net income, attributed to higher credit loss provisions.

Deere & Company’s projections for fiscal 2025 indicate a net income range of $5.0 billion to $5.5 billion, suggesting a cautious yet optimistic outlook despite anticipated headwinds in its core markets. The company plans to continue its focus on strategic investments to enhance customer efficiency and reduce operating costs, supported by its robust workforce of over 75,000 employees.

Looking ahead, Deere & Company remains committed to navigating market challenges by leveraging its structural improvements and strategic investments, aiming to maintain its position as a leader in its industry.