Deere Reports First Quarter Net Income of $869 Million

Core Insights - Deere & Company reported a significant decline in net income for the first quarter of fiscal 2025, with net income of $869 million, down 50$1,751 million in the same quarter of 2024, resulting in earnings per share of $3.19 compared to$6.23 [1][4] - Worldwide net sales and revenues decreased by 30% to $8.508 billion, with net sales at$6.809 billion compared to 10.486 billion in the previous year [1][4] Financial Performance - Production & Precision Agriculture segment saw net sales drop by 37% to 3.067 billion, with operating profit down 68% to $338 million, leading to an operating margin decrease from 21.6$1.748 billion, down 28% from $2.425 billion, with operating profit decreasing by 62$124 million and operating margin falling from 13.4% to 7.1% [6][8] - Construction & Forestry segment experienced a 38% decline in net sales to $1.994 billion, with operating profit plummeting 89$65 million, resulting in an operating margin decrease from 17.6% to 3.3% [9] Company Outlook - The company forecasts net income for fiscal 2025 to remain stable in the range of $5.0 billion to$5.5 billion, indicating resilience in a challenging market [3][7] - The company emphasizes its focus on optimizing inventory levels of both new and used equipment to navigate uncertain market conditions [2][7] Industry Outlook - The outlook for the agriculture and turf industry indicates a decline of approximately 30% for large agriculture and 10% for small agriculture and turf in the U.S. and Canada, with Europe down about 5% [11] - In the construction and forestry sector, construction equipment is expected to decline by around 10%, while compact construction equipment is projected to decrease by 5% [12]