Summary by Moomoo AI
Deere & Company reported fiscal 2024 net income of $7.1 billion, down from $10.2 billion in 2023, as net sales declined 22% to $44.8 billion amid weakening market conditions. The decline was driven by lower shipment volumes across all segments, partially offset by price realization. Production & Precision Agriculture sales fell 22% to $20.8 billion, while Small Agriculture & Turf dropped 22% to $11.0 billion.The company implemented cost reduction measures including employee-separation programs expected to deliver $220 million in annual savings. Financial services net income increased 12% to $696 million despite higher credit loss provisions, supported by growth in the average portfolio. Operating cash flow remained strong at $9.2 billion, with the company returning $5.6 billion to shareholders through dividends and share repurchases.Looking ahead to fiscal 2025, Deere expects agriculture and construction equipment sales to decline further due to continued market weakness. Key factors impacting the outlook include elevated interest rates, lower commodity prices, and high dealer inventory levels. The company maintains its focus on operational efficiency and strategic investments in precision technologies while managing through the downturn.
