Q3 2024 Deere & Co Earnings Call Transcript
Key Points
- Deere & Co (DE) maintained an 18.5% margin for equipment operations despite a challenging macro environment.
- Proactive inventory and cost management helped maintain solid price realization.
- Order books across all segments are effectively full for the remainder of the fiscal year.
- Strategic partnerships with suppliers are driving down material and freight costs.
- Continued investment in future growth and technology, such as precision solutions, is showing positive adoption rates.
- Net sales and revenues were down 17% year-over-year, with equipment operations down 20%.
- Ag fundamentals remain muted, and market demand in construction and forestry has tempered.
- High interest rates and geopolitical uncertainty are weighing on customer purchase decisions.
- Lower shipment volumes and higher warranty expenses negatively impacted operating profit in the small ag & turf segment.
- Increased competition and rising inventory levels in the construction segment led to net pricing declines.
Good morning and welcome to the Deere & Company's third 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 John May, Chief Executive Officer; Josh Jepsen, Chief Financial Officer; Luke Gakstatter, Senior Vice President, ag and turf sales and marketing for Americas and Australia; and Josh Rohleder, Manager of Investor Communications.
Today, we'll take a closer look at Deere's third quarter earnings and 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
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