John Deere Announces Fiscal Year 2024 Results

John Deere & Company announced financial results that reflect the challenges faced in 2024, marked by a 30% drop in annual profits compared to the previous year.

Deere’s fourth-quarter net income was $1,245 billion, down 47% from the same period in 2023. For the fiscal year, net income totaled $7,1 billion, compared with $10,166 billion a year earlier. Global sales and revenues fell 28% in the quarter to $11,143 billion and 16% year-to-date to $51,716 billion.

According to John May, CEO of Deere, strategic adjustments were made to align the operation with market conditions. “These changes, together with structural improvements in recent years, reinforce our ability to serve customers and maintain solid performance,” he said.

Business Segments

• Precision production and agriculture: Sales fell 38% in the quarter, impacted by lower shipment volumes. Operating profit fell 64%, reflecting lower revenue and sales mix.

• Small farming and lawns: sales fell 25%, but price realization helped cushion the impact. Operating profit fell 47%.

• Construction and forestry: 29% drop in sales and 36% drop in operating profit, influenced by the reduction in shipment volumes.

Prospects for 2025

Deere expects net income of between $5 billion and $5,5 billion for 2025, citing adverse global market conditions. In the agriculture sector, it expects a 30% contraction in the large machinery market in the U.S. and Canada and a stabilization in South America. The construction segment could face a reduction of up to 15% in global sales.