Deere & Company reported a 15% decrease in sales for the second quarter and a 17% drop in net income. Worldwide sales, which includes Wirtgen global roadbuilding, totaled $15.23 billion compared to $17.39 billion in the same period of 2023.
Net income for the second quarter was $2.37 billion, down from $2.86 billion in the same quarter a year ago.
The company attributed the results to “continued changes across the global agricultural sector.”
“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,” said John C. May, chair/CEO in a statement.
“We are proactively managing our production and inventory levels to adapt to demand changes and position the business for the future,” May said. “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.”
Second-quarter sales of Construction & Forestry equipment were $3.84 billion, down 7% from $4.11 billion in Q2 2023. Operating profit dropped 20%. In its outlook for the remainder of the 2024 fiscal year, Deere said it expected North American construction equipment to be flat to down 5%, with compact equipment expected to be flat. Its global roadbuilding expectations are flat to down 5%.
