Q2 2024 Deere & Co Earnings Call Transcript
Key Points
- Deere & Co (DE) reported a solid execution in the second quarter with a 21.2% margin for the equipment operations.
- Net income attributable to Deere & Co (DE) was $2.37 billion or $8.53 per diluted share, demonstrating strong financial performance.
- Price realization was positive across several segments, contributing to the overall profitability of the company.
- Deere & Co (DE) has been proactive in managing inventory levels, aligning production with market demand to optimize financial performance.
- The company continues to invest in technology and innovation, enhancing its product offerings and maintaining a competitive edge in the market.
- Net sales and revenues were down 12% to $15.235 billion, and net sales for the equipment operations were down 15% to $13.61 billion, indicating a decrease in market demand.
- Operating profit in several segments, including Production and Precision Ag and Small Ag and Turf, declined due to lower shipment volumes and higher production costs.
- Global agricultural market conditions are challenging, with softening grower sentiment and high interest rates impacting customer purchase decisions.
- Industry sales forecasts for large ag equipment and small ag and turf in key markets like the U.S., Canada, and Europe have been revised downward, reflecting reduced demand.
- The Construction and Forestry segment also saw a decrease in net sales and operating profit, affected by lower shipment volumes and increased R&D and S&A expenses.
Good morning, and welcome to Deere & Company Second Quarter Earnings Conference Call. (Operator Instructions) I would now like to turn the call over to Mr. Josh Beal, Director of Investor Relations. Thank you. You may begin.
Hello. Welcome, and thank you for joining us on today's call. Joining me on the call today are Josh Jepsen, Chief Financial Officer; Cory Reed, President Worldwide Agriculture and Turf division, Production & Precision Ag Americas and Australia; and Josh Rohleder, Manager of Investor Communications.
Today, we'll take a closer look at Deere's second quarter earnings, then spend some time talking about our markets and our current outlook for fiscal 2024. After that, we'll respond to your questions. Please note that slides are available to complement the call this morning. They can be accessed on our website at johndeere.com/earnings.
First, a reminder, this call is broadcast live on the Internet and recorded for future transmission and use by Deere & Company. Any
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