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Deere & Company’s $12.6 Billion Quarter — Strong Execution Meets A Weak Farm Cycle!

Deere & Company reported third-quarter results showing mixed but generally resilient performance across its markets. Total net sales increased 5% to $12.608 billion, while equipment operations net sales rose 6% to $10.999 billion. Net income attributable to Deere & Company was $1.379 billion, or $5.10 per diluted share, supported by execution and cost discipline. Production & Precision Agriculture net sales declined 6% year-over-year to $3.998 billion due mainly to lower shipment volumes, partly offset by favorable pricing and currency. Operating margin fell to 13.2% because of lower volumes and higher production costs. Full-year sales guidance was reduced to approximately a 10% decline, reflecting weakness in South America and Europe, while operating margin guidance was narrowed to 11% to 12%. Small Agriculture & Turf performed better, with net sales increasing 12% to $3.383 billion and operating margin improving to 18.4%.