Deer & Co. reported its third quarter net income of $1.7 billion on Aug. 15. Worldwide net sales and revenues decreased 17%, to $13.152 billion, for the third quarter of 2024 and decreased 11%, to $40.572 billion, for 9 months. Net sales were $11.387 billion for the quarter and $35.484 billion for 9 months, compared with $14.284 billion and $41.765 billion last year, respectively.
Net sales for the Production & Precision Agriculture division were $5.1 billion, down 25% vs. $6.8 billion for the same quarter in 2023.
In a note to investors, JP Morgan analyst Tami Zakaria wrote, “Overall, the implied outlook of modestly positive pricing in F4Q in Production & Precision Agriculture and $230 million of announced annual cost savings, of which $130 million is expected to be realized in 2025, should quell some concerns among long-term bulls, but tactical bears will likely find assurance that pricing could turn negative next year as Deere’s retail sales underperformed the North American industry’s declines in the quarter in all ag equipment categories except 2WD tractors while inventories were up modestly as well vs. last year.”
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