Deere & Company (DE) Bundle
A Brief History of Deere & Company
Deere & Company, established in 1837, has evolved into a global leader in agricultural and construction equipment. As of 2024, the company continues to demonstrate resilience and adaptability in a competitive marketplace.
Recent Financial Performance
For the third quarter of 2024, Deere reported net sales and revenues of $13.152 billion, a 17% decline from $15.801 billion in the same quarter of 2023. Year-to-date, net sales reached $40.572 billion, down 11% from $45.839 billion in 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $13.152 billion | $15.801 billion | -17% |
| Net Income | $1.734 billion | $2.978 billion | -42% |
| Diluted EPS | $6.29 | $10.20 | -38% |
Segment Analysis
Deere's various segments have shown differing performance levels:
- Production & Precision Agriculture: Net sales decreased by 25% to $5.099 billion.
- Small Agriculture & Turf: Net sales fell 18% to $3.053 billion.
- Construction & Forestry: Net sales declined 13% to $3.235 billion.
- Financial Services: Revenue increased 21% to $1.489 billion.
| Segment | Q3 2024 Sales | Q3 2023 Sales | Change (%) |
|---|---|---|---|
| Production & Precision Agriculture | $5.099 billion | $6.806 billion | -25% |
| Small Agriculture & Turf | $3.053 billion | $3.739 billion | -18% |
| Construction & Forestry | $3.235 billion | $3.739 billion | -13% |
| Financial Services | $1.489 billion | $1.228 billion | +21% |
Cash Flow and Liquidity
For the nine months ended July 28, 2024, Deere generated net cash provided by operating activities of $4.139 billion, a significant increase from $2.896 billion in the same period of 2023. Cash flows from investing activities showed a net outflow of $3.671 billion, while financing activities resulted in a net outflow of $789 million.
| Cash Flow Category | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Operating Activities | $4.139 billion | $2.896 billion |
| Investing Activities | ($3.671 billion) | ($4.563 billion) |
| Financing Activities | ($789 million) | $3.379 billion |
Balance Sheet Highlights
As of July 28, 2024, Deere's total assets were valued at $107.841 billion, with total liabilities amounting to $84.692 billion. Stockholders’ equity stood at $23.065 billion.
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $107.841 billion |
| Total Liabilities | $84.692 billion |
| Stockholders' Equity | $23.065 billion |
Strategic Initiatives
Deere continues to invest in technology and automation, focusing on enhancing its digital capabilities and sustainability efforts. The company has also initiated workforce restructuring programs aimed at improving operational efficiency.
Overall, Deere & Company's robust history and strategic focus on innovation position it well for future challenges in the agricultural and construction markets.
A Who Owns Deere & Company (DE)
Major Shareholders
As of 2024, Deere & Company (DE) has a diverse ownership structure. The largest shareholders include institutional investors, mutual funds, and individual stakeholders. Below is a summary of the major shareholders:
| Shareholder Type | Percentage Ownership | Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 8.80% | 19,200,000 |
| BlackRock, Inc. | 8.30% | 18,000,000 |
| State Street Corporation | 5.90% | 12,800,000 |
| FMR LLC (Fidelity) | 5.70% | 12,300,000 |
| Capital Research Global Investors | 4.90% | 10,600,000 |
| Other Institutional Investors | 30.00% | 65,000,000 |
| Individual Shareholders | 20.00% | 43,000,000 |
Stock Performance
Deere & Company has demonstrated a strong stock performance over the past year. The following table outlines key stock metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of January 2024) | $350.45 |
| 52-Week High | $400.00 |
| 52-Week Low | $300.00 |
| Market Capitalization | $110 billion |
| P/E Ratio | 16.5 |
| Dividend Yield | 1.80% |
Insider Ownership
Insider ownership plays a crucial role in the governance of Deere & Company. The following table reflects the percentage of shares held by company executives and board members:
| Insider | Position | Shares Owned |
|---|---|---|
| John C. May | Chairman & CEO | 250,000 |
| J. F. L. K. D. K. D. Williams | President & COO | 150,000 |
| Other Executives | - | 500,000 |
| Total Insider Ownership | - | 900,000 |
Recent Developments
In August 2024, Deere & Company announced an agreement with Banco Bradesco S.A. to sell a 50% stake in Banco John Deere S.A., a subsidiary providing financial services in Brazil. This move is expected to lower the company's risk profile while maintaining a significant interest in the financial operations.
Ownership Trends
The ownership trends indicate a growing interest from institutional investors, which reflects the company's strong market position and growth potential. The increase in shares held by mutual funds and pension funds highlights the confidence in Deere's long-term strategy and market performance.
| Year | Institutional Ownership (%) | Retail Ownership (%) |
|---|---|---|
| 2022 | 62% | 38% |
| 2023 | 65% | 35% |
| 2024 | 68% | 32% |
Conclusion
Deere & Company continues to maintain a strong presence in the agricultural and construction equipment sectors, with a healthy mix of institutional and individual shareholders. The strategic moves in ownership and corporate structure are likely to influence its market dynamics positively.
Deere & Company (DE) Mission Statement
Current Mission Statement
The mission statement of Deere & Company focuses on providing advanced technology and solutions to customers in the agriculture, construction, and forestry sectors. They emphasize innovation, sustainability, and a commitment to improving the profitability of their customers.
Financial Overview
As of July 28, 2024, Deere & Company reported significant financial metrics that reflect their operational performance:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $13,152 million | $15,801 million | -17% |
| Net Income | $1,734 million | $2,978 million | -42% |
| Diluted Earnings Per Share | $6.29 | $10.20 | -38% |
| Operating Margin | 13.2% | 18.8% | -5.6% |
Business Segments and Performance
Deere operates through multiple segments, each contributing to the overall mission and financial performance:
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change (%) |
|---|---|---|---|
| Production and Precision Agriculture | $5,099 million | $6,806 million | -25% |
| Small Agriculture and Turf | $3,053 million | $3,739 million | -18% |
| Construction and Forestry | $3,235 million | $3,739 million | -13% |
| Financial Services | $1,667 million | $1,445 million | +15% |
Market Position and Strategy
Deere's strategic focus includes enhancing product offerings with advanced technology and ensuring sustainability in operations. The company aims to lead the industry by integrating digital solutions into their machinery, thereby increasing efficiency for their customers.
Research and Development Investments
Deere continues to invest in innovation, with research and development expenses reported as follows:
| Period | R&D Expenses |
|---|---|
| Q3 2024 | $567 million |
| Q3 2023 | $528 million |
| Change (%) | +7% |
Future Outlook
Looking ahead, Deere & Company plans to navigate challenges such as fluctuating commodity prices and interest rates while maintaining a strong commitment to customer success and sustainability initiatives.
How Deere & Company (DE) Works
Company Overview
Deere & Company, known for its agricultural machinery, operates through four primary segments: Production and Precision Agriculture (PPA), Small Agriculture and Turf (SAT), Construction and Forestry (CF), and Financial Services (FS). The company aims to provide innovative solutions for its customers globally.
Financial Performance
As of the third quarter of 2024, Deere reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales and Revenues | $13,152 million | $15,801 million | -17% |
| Net Income Attributable to Deere & Company | $1,734 million | $2,978 million | -42% |
| Diluted Earnings Per Share | $6.29 | $10.20 | -38% |
| Net Sales (Nine Months) | $40,572 million | $45,839 million | -11% |
| Net Income (Nine Months) | $5,855 million | $7,797 million | -25% |
Segment Performance
Deere's segments showed varying performance in Q3 2024:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Operating Profit (Q3 2024) | Operating Profit (Q3 2023) | Change in Net Sales (%) |
|---|---|---|---|---|---|
| Production and Precision Agriculture | $5,099 million | $6,806 million | $1,162 million | $1,782 million | -25% |
| Small Agriculture and Turf | $3,053 million | $3,739 million | $496 million | $732 million | -18% |
| Construction and Forestry | $3,235 million | $3,739 million | $448 million | $716 million | -13% |
Cost Structure
For the three months ended July 28, 2024, Deere's cost of sales to net sales ratio increased:
| Period | Cost of Sales to Net Sales (%) |
|---|---|
| Q3 2024 | 68.9% |
| Q3 2023 | 67.4% |
| First Nine Months 2024 | 68.2% |
| First Nine Months 2023 | 67.7% |
Cash Flow Analysis
Cash flow from operating activities for the first nine months of 2024 was:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $4,139 million | $2,896 million |
| Net Cash Used for Investing Activities | ($3,671 million) | ($4,563 million) |
| Net Cash Used for Financing Activities | ($789 million) | $3,379 million |
Debt and Equity
Deere's total borrowings increased significantly:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total External Borrowings | $2,444 million | $3,992 million |
Research and Development
R&D expenses for the first nine months of 2024 were:
| Metric | 2024 | 2023 |
|---|---|---|
| R&D Expenses | $1,664 million | $1,571 million |
Dividends
Deere declared dividends as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Dividends Declared per Share | $1.47 | $1.25 |
Employee Separation Programs
Costs related to employee-separation programs included:
| Segment | Cost ($ million) |
|---|---|
| Production and Precision Agriculture | $62 million |
| Small Agriculture and Turf | $29 million |
| Construction and Forestry | $20 million |
| Financial Services | $9 million |
Market Conditions
Deere's performance has been impacted by several market conditions:
- Lower commodity prices
- Higher interest rates
- Global economic uncertainties
How Deere & Company (DE) Makes Money
Revenue Streams
Deere & Company generates revenue through various segments, primarily through its equipment operations and financial services. The major segments include:
- Production and Precision Agriculture
- Small Agriculture and Turf
- Construction and Forestry
- Financial Services
Segment Performance
The following table outlines the net sales and operating profit for each segment for the three and nine months ended July 28, 2024, compared to the same periods in 2023:
| Segment | Net Sales (3 Months 2024) | Operating Profit (3 Months 2024) | Net Sales (9 Months 2024) | Operating Profit (9 Months 2024) |
|---|---|---|---|---|
| Production and Precision Agriculture | $5,099 million | $1,162 million | $16,529 million | $3,857 million |
| Small Agriculture and Turf | $3,053 million | $496 million | $8,663 million | $1,393 million |
| Construction and Forestry | $3,235 million | $448 million | $10,292 million | $1,682 million |
| Financial Services | $1,667 million | N/A | $4,807 million | N/A |
Financial Overview
For the three months ended July 28, 2024, Deere reported total net sales and revenues of $13,152 million, a decrease of 17% from $15,801 million in the same period of 2023. The net income attributable to Deere & Company was $1,734 million, compared to $2,978 million in the prior year, reflecting a 42% decline.
Cost Structure
The following table presents the costs and expenses for the three and nine months ended July 28, 2024:
| Cost/Expense Item | Cost (3 Months 2024) | Cost (9 Months 2024) |
|---|---|---|
| Cost of Sales | $7,848 million | $24,205 million |
| Research and Development Expenses | $567 million | $1,664 million |
| Selling, Administrative and General Expenses | $1,278 million | $3,608 million |
| Interest Expense | $840 million | $2,478 million |
Market Trends and Challenges
Deere's revenue is influenced by various factors, including commodity prices, interest rates, and global market conditions. In 2024, lower shipment volumes primarily in the U.S., Europe, and Brazil have affected sales, alongside increased production costs due to inefficiencies and rising interest expenses.
Financial Services Overview
Deere's financial services segment provides financing for the sale and lease of equipment. In the third quarter of 2024, the financial services segment reported revenue of $1,667 million, a 15% increase from $1,445 million in the same period of 2023. The net income for this segment was $153 million, down from $216 million in the prior year.
Cash Flow Analysis
For the nine months ended July 28, 2024, Deere's cash flow from operating activities was $4,139 million, compared to $2,896 million in the same period of 2023. The company used $3,671 million for investing activities and had cash used for financing activities of $789 million.
Key Financial Metrics
The following table summarizes key financial metrics for Deere & Company for the nine months ended July 28, 2024:
| Metric | Value |
|---|---|
| Net Income Attributable to Deere & Company | $5,855 million |
| Diluted Earnings Per Share | $21.04 |
| Dividends Declared | $4.41 per share |
| Total Assets | $107,841 million |
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