Deere & Co. reported dips in sales and net income for both the recently completed quarter and the entire fiscal year during an earnings call Thursday morning.
The company reported a net income of $1.25 billion for its fourth quarter, which ended Oct. 27, compared to $2.37 billion for the same quarter last year. Net income is $7.1 billion for the entire fiscal year — which also ended Oct. 27 — compared to $10.17 billion last fiscal year.
The company’s construction and forestry division, which includes John Deere Dubuque Works, reported $2.66 billion in net sales during the fourth quarter, down from $3.74 billion in the same quarter last year. Operating profits for the division were $328 million, down from $516 million last year.
Nonetheless, Deere leaders noted that the year ended slightly better than projected and expressed satisfaction with how the company has weathered unfavorable market conditions.
“I couldn’t be prouder of the resilience demonstrated by our John Deere employee team this year,” Board Chairman and CEO John May said during the earnings call. “The velocity at which markets slowed tested our discipline and our agility.”
Amid the layoff of several hundred workers at plants across Iowa and Illinois earlier this year, including about 100 production employees in Dubuque, Deere leaders said adjusting inventory levels to account for decreased demand put the company in a satisfactory position.
“We targeted field inventory reductions by pulling back production and shipping at our factories across the globe,” said Josh Beal, director of investor relations. “Overall, the decisive actions we took this year resulted in a solid finish.”
For the construction and forestry division, industry sales are expected to be down in 2025. Earthmoving equipment sales in the U.S. and Canada are expected to be down about 10%, and compact construction equipment sales in the U.S. and Canada are expected to be down 5%, Deere officials reported.
“Our (construction industry) customers continue to see a strong backlog of work, albeit alongside stiffer competition, which is driving down bids and overall project margins,” Beal said. “There is less near-term appetite for new equipment purchases.”
Global forestry markets are expected to be flat to down 5%, while global roadbuilding markets are expected to be roughly flat, manager of investor communications Josh Rohleder said during the call.
Overall, the company forecasts a net income of $5 billion to $5.5 billion for fiscal year 2025.