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MANUFACTURERS REPORT DROPS , SOME BY DOUBLE DIGITS
DEERE & COMPANY Deere & Company reported , for the fourth quarter of its fiscal 2024 , revenue of $ 9.3 billion , down 32 % compared to the same period last year . By segment , Deere ’ s construction and forestry sales were down 29 %, production and precision agriculture sales fell 38 %, and small agriculture and turf sales were down 25 % year over year . Deere reported that its profit of $ 1.2 billion in Q4 24 was off 47 % from its $ 2.4 billion profit figure in the Q4 2023 .
Small agriculture and turf sales decreased for the quarter by 25 % due to lower shipment volumes , partially offset by price realization . Operating profit decreased due to lower shipment volumes / sales mix and special items , including legal settlements and employee-separation programs .
Deere predicts continued declining sales volume , specifically a 10 % to 15 % fall in sales across segments . Depending on the scale and scope of the Trump tariffs and deportation efforts , Deere and U . S . farmers could both feel further economic constrictions in 2025 .
“ Amid significant market challenges this year , we proactively adjusted our business operations to better align with the current environment ,” said John May , chairman and CEO of Deere & Company . “ Together with the structural improvements made over the past several years , these adjustments enable us to serve our customers more effectively and achieve strong results across the business cycle .”
CNH CNH Industrial ( Case , New Holland ) reported results for the three months ended September 30 , 2024 . Its consolidated revenues were $ 4.65 billion ( down 22 % compared to Q3 2023 ) and net sales of Industrial Activities were $ 4.00 billion ( down 25 % compared to Q3 2023 ). The manufacturer also lowered its full year 2024 guidance to reflect continued weak end markets and elevated channel inventory levels .
“ With the current challenging market conditions facing farmers across the globe , CNH is implementing decisions to advance our transformation journey . We have focused on making the company ’ s operations more efficient and on being more responsive to our customers ’ needs . But dealer inventories remain elevated and will require additional efforts to align with retail demand ,” wrote CEO Gerrit Marx , in a statement .
In North America , industry volume was down 18 % year-over-year in the third quarter for tractors under 140 horsepower . Light construction equipment was down 9 %. Construction net sales decreased for the quarter by 28 % to $ 687 million , due to lower volumes driven mainly by a decrease in market demand across all regions .
CATERPILLAR On Oct . 30 , Caterpillar Inc . announced its Q3 2024 financial results , reporting a 4 percent drop in total sales and revenue compared with last year . Cat reported $ 16.106 billion in sales and revenue , a decrease of $ 704 million , compared
with $ 16.810 billion in the third quarter of 2023 . The company said the decrease was primarily due to lower sales volume to end users ($ 759 million ). In addition , changes in dealer inventories had an unfavorable impact to sales volume . Dealer inventory increased less during the third quarter of 2024 than during the third quarter of 2023 .
In the three primary segments , sales were lower in Construction Industries ( including outdoor power equipment ) and Resource Industries , and higher in Energy & Transportation .
KUBOTA Kubota Global released its finance reports YTD through Q3 2024 , for the nine months ended September 30 , 2024 . For the North American market , Kubota reports steady demand of infrastructure development in the CE market . The demand of housing market is calm although it is soft . In the tractor business , the residential market has been slow due to slowdown in business sentiment . The agricultural market also slowed down due to crop prices decline .
In a separate monthly sales report for the U . S . market in October 2024 , Kubota reported that tractor sales were down double digits YOY , mower & RTV sales were up by double digits , and CE sales were up between 2 and 10 %.
8 OPE + December 2024 www . OPE-Plus . com