Summary by Moomoo AI
Deere & Company reported third quarter fiscal 2024 net sales and revenues of $13.2 billion, down 17% year-over-year, while net income declined 42% to $1.73 billion or $6.29 per share. The decline was primarily driven by lower shipment volumes across all segments amid reduced demand in global agricultural and construction markets.Production & Precision Agriculture sales fell 25% to $5.1 billion due to lower shipments in major markets, while Small Agriculture & Turf revenue dropped 18% to $3.1 billion. Construction & Forestry segment sales decreased 13% to $3.2 billion on lower U.S. volumes. Financial Services revenue rose 21% to $1.5 billion but segment profit declined 29% due to higher credit loss provisions and less favorable financing spreads.The company implemented employee separation programs expected to generate $230 million in annual savings. Additionally, Deere announced plans to sell 50% of its Brazilian financial services unit Banco John Deere S.A. to Banco Bradesco S.A. Looking ahead, management expects continued production volume declines for the remainder of 2024 due to reduced demand and inventory management efforts.
