Dubuque County’s largest employer saw decreases in net income during its recently completed fiscal quarter, as well as declining sales in the division that includes John Deere Dubuque Works.
Deere & Co. reported net income of $869 million for the first quarter of fiscal year 2025, per figures shared Thursday during an earnings call with investors. During the same period in the past fiscal year, that figure was $1.75 billion.
“This quarter has really been about executing on our plans as we continue to manage through this downturn,” Investor Relations Director Josh Beal said. “Our setup was solid … and has positioned us well for another challenging year in terms of market demand.”
Net sales and revenues for the company totaled about $8.51 billion in the first quarter, which ended Jan. 26. That’s down 30% from the $12.19 billion the company reported during the same period last year.
The construction and forestry division, which includes the Dubuque plant, saw nearly $2 billion in net sales during the first quarter — down from $3.21 billion during the same quarter last year. The division saw operating profits of $65 million, representing an 89% year-over-year decrease.
Investor Communications Manager Josh Rohleder attributed the decrease in sales to lower shipment volumes that drove down profits in construction and forestry. Unfavorable price realization and increased research and development expenses also contributed to overall operating profit declines.
He noted, however, that some of the shipping declines could be attributed to an intentional underproduction of certain Deere products in the first quarter aimed at decreasing field inventory levels.
“The planned underproduction in our earthmoving segment during the first quarter drove reductions in field inventory levels that will enable production optionality as market demands develop over the course of the year,” Rohleder said.
By reducing inventory levels proactively, Rohleder said, the company is in a better position to adjust its production to match actual demand. As such, company leaders intend to recover some of the first-quarter shortfall during the remainder of the fiscal year.
Industry construction equipment sales in the U.S. and Canada are expected to decline roughly 10% this fiscal year, per projections presented during Thursday’s call, though global roadbuilding and forestry sales are expected to remain flat.
Across all divisions, net income attributable to Deere & Co. for fiscal 2025 is forecasted to remain in a range of $5.0 billion to $5.5 billion — in line with projections made at the beginning of the fiscal year.
“The stability of our net income guidance not only reflects our resilience in a challenging market but also enables our sustained strategic investments to provide better outcomes for our customers,” CEO John May said in a written statement released after the earnings call.