Deere Reports Second Quarter Net Income of $2.370 Billion

Global agricultural and turf demand further softens while the construction industry remains stable

Published online: May 22, 2024 News
Viewed 133 time(s)

Moline, Illinois — 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.

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.”

Company Outlook & Summary

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.” 

Deere & Company                Second Quarter                       Year to Date

$ in millions,                           2024       2023     % Change    2024        2023   % Change

(except per share amounts)

Net sales and revenues         $ 15,235  $ 17,387   -12%        $ 27,420 $ 30,038    -9%

Net income                             $ 2,370    $ 2,860     -17%        $ 4,121   $ 4,819     -14%

Fully diluted EPS                   $ 8.53       $ 9.65                        $ 14.74   $ 16.18

Prior period results were affected by a special item. See Note 1 of the financial statements for further details.

Production & Precision Agriculture            Second Quarter

$ in millions                                                     2024                2023                % Change

Net sales                                                         $ 6,581            $ 7,822            -16%

Operating profit                                               $ 1,650            $ 2,170            -24%

Operating margin                                               25.1%              27.7%

Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes, partially offset by price realization. Operating profit decreased due to lower shipment volumes and higher production costs, partially offset by price realization. 

Industry Outlook for Fiscal 2024

Agriculture & Turf

U.S. & Canada:

  Large Ag                                                       Down ~ 15%

  Small Ag & Turf                                           Down ~ 10%

Europe                                                             Down ~ 15%

South America (Tractors & Combines)           Down 15 to 20%

Asia                                                                 Down moderately

Deere Segment Outlook for Fiscal 2024

                                                                        Currency                    Price

$ in millions                            Net Sales         Translation                  Realization

Production & Precision Ag     Down 20-25%   ~ Flat                           +1.5%

Small Ag & Turf                     Down 20-25%    ~ Flat                           +1.5%

Construction & Forestry         Down 5-10%     ~ Flat                           +1.5%

Financial Services                   Net Income                 ~$ 770