Third-quarter sales of construction and forestry equipment dropped 13% for John Deere compared to the previous year, to $3.23 billion from $3.74 billion. Company-wide equipment sales dropped 20% to $11.29 billion in the quarter, reflecting weakness in the agricultural market. Production and precision ag posted a loss of 25% in the quarter.
Deere’s outlook for the fiscal year is for sales of construction equipment to be down 5 to 10% in the U.S. and Canada, sales of compact equipment flat to down 5%, and global roadbuilding sales (Wirtgen brands) to be flat to down 5%.
Net income for the quarter was $1.73 billion, down 42% from $2.98 billion reported in Q3 2023.
“John Deere’s third-quarter results showcase our disciplined execution in the face of challenging conditions in the global agricultural and construction sectors,” said John C. May, chairman/CEO, in a statement. “Despite facing significant headwinds, our teams have demonstrated resiliency in adapting to market fluctuations, allowing us to remain focused on advancing our strategy and consistently providing exceptional value to our customers.”
Deere cuts costs
During the quarter, Deere announced plans to move production of some of its compact construction equipment to Mexico, and has laid off production and headquarters staff.
“In response to weak market conditions, we have taken steps to reduce costs and strategically align our production with customer needs, ” said May. “Although these decisions were difficult, they are vital for our continued success and competitiveness. Our commitment to our customers is at the heart of everything we do, and we are confident that these proactive measures will allow us to continue investing in innovative, high-quality products and solutions that improve our customers’ lives.”
