Mission Statement, Vision, & Core Values (2024) of Deere & Company (DE).

An Overview of Deere & Company (DE)

An Overview of Deere & Company (DE)

Deere & Company, commonly known as John Deere, was founded in 1837 by blacksmith John Deere in Grand Detour, Illinois. The company originally produced a plow designed to cut through the tough prairie soil. Over the years, Deere has evolved into a leading manufacturer of agricultural, construction, and forestry equipment, as well as providing financial services to support its operations. As of 2024, Deere offers a wide range of products including tractors, combine harvesters, and precision agriculture solutions, along with financial services that include equipment financing and leasing.

In 2024, Deere's net sales and revenues reached approximately $40.57 billion, down from $45.84 billion in 2023, reflecting a decrease primarily due to lower sales volumes across its product lines. The company operates through various segments, including:

• Production and Precision Agriculture
• Small Agriculture and Turf
• Construction and Forestry
• Financial Services

Company's Financial Performance in the Latest Financial Reports

Deere's financial performance in 2024 has shown significant challenges, with net sales and revenues decreasing by 17% in the third quarter compared to the same period in 2023. The company's net income for the third quarter was $1.73 billion, down 42% from $2.97 billion in 2023. Diluted earnings per share (EPS) also declined to $6.29, compared to $10.20 in the previous year.

In terms of specific segments, the Production and Precision Agriculture segment saw a 25% decline in net sales, largely due to reduced shipment volumes driven by lower commodity prices and higher interest rates. The Small Agriculture and Turf segment also experienced an 18% decrease in net sales, while the Construction and Forestry segment's sales dropped by 13%. Conversely, the Financial Services segment reported a 15% increase in revenues, reflecting higher average financing rates.

Introduction to Deere as a Leader in the Industry

Deere & Company remains one of the leading companies in the agricultural and construction equipment industry. With a rich history of innovation spanning over 185 years, Deere has consistently focused on developing advanced technologies and sustainable solutions to meet the evolving needs of its customers. The company's commitment to research and development is evident in its significant investments, which amounted to $1.66 billion in the first nine months of 2024, an increase of 6% compared to the previous year.

As a market leader, Deere continues to adapt to changing market conditions, leveraging its strong brand reputation and extensive dealer network to maintain its competitive edge. The company’s strategic focus on precision agriculture, automation, and digital solutions positions it well for future growth and success in the industry.

Mission Statement of Deere & Company (DE)

Mission Statement Overview

Deere & Company (DE) is dedicated to providing advanced solutions that enhance the productivity and profitability of its customers. The mission statement serves as a guiding framework, outlining the company's commitment to innovation, quality, and sustainability across its product lines and services.

Core Component 1: Customer Commitment

Deere & Company's mission emphasizes a strong commitment to its customers. This commitment is reflected in the company’s focus on understanding customer needs and delivering tailored solutions that improve operational efficiency. For instance, in the fiscal year 2024, Deere reported a net sales revenue of $40.57 billion, a decrease of 11% compared to the previous year. This decline was primarily attributed to lower shipment volumes, but the company maintained a focus on enhancing customer experience and satisfaction through innovative products.

Core Component 2: Innovation

Innovation is a critical aspect of Deere's mission. The company invests heavily in research and development, with expenses amounting to $1.66 billion in the first nine months of 2024, marking a 6% increase from the previous year. This investment underlines Deere's commitment to integrating advanced technology into its equipment and services, enabling customers to leverage digital tools for better productivity.

Core Component 3: Sustainability

A significant focus of Deere & Company’s mission is sustainability. The company aims to develop solutions that not only boost productivity but also minimize environmental impact. In 2024, Deere pledged to enhance its sustainability initiatives across operations, including reducing greenhouse gas emissions and improving resource efficiency. For instance, the company reported a 25% increase in renewable energy usage in its manufacturing processes.

Deere & Company's mission statement encapsulates its dedication to delivering exceptional products and services, with an unwavering focus on customer satisfaction, innovation, and sustainability. The company's performance metrics and strategic objectives showcase its commitment to these core values, driving its long-term vision and operational excellence.

Vision Statement of Deere & Company (DE)

Vision of Deere & Company

The vision statement of Deere & Company (DE) emphasizes innovation, sustainability, and customer success in the agricultural and construction sectors. The company aims to be the leading provider of advanced equipment and technology solutions, enhancing productivity and efficiency for its customers.

Deere's commitment to innovation is reflected in its substantial investment in research and development. In the first nine months of 2024, the company allocated $1.664 billion to R&D, up from $1.571 billion in the same period of 2023, indicating a 6% increase. This investment aims to integrate cutting-edge technology into their product offerings, ensuring they meet the evolving needs of their customers.

Deere’s vision also focuses on sustainability, aiming to minimize environmental impact while maximizing agricultural productivity. The company has set ambitious targets to reduce greenhouse gas emissions across its operations. As of 2024, Deere has committed to achieving net-zero emissions by 2030 for its manufacturing operations. This reflects a strategic shift towards sustainable practices, aligning with global trends and customer expectations.

At the heart of Deere's vision is a customer-centric approach. The company strives to deliver exceptional value to its customers through advanced solutions that increase efficiency and profitability. In the first nine months of 2024, net sales amounted to $40.572 billion, reflecting a decrease of 11% compared to $45.839 billion in the same period of 2023. Despite this decline, Deere remains focused on enhancing customer relationships and providing tailored solutions to meet their specific needs.

Financial Performance Overview

In 2024, Deere has faced challenges, including lower shipment volumes due to fluctuating commodity prices and higher interest rates. The company reported a net income attributable to Deere & Company of $5.855 billion for the first nine months of 2024, down from $7.797 billion in 2023, reflecting a 25% decline. This decline underscores the importance of Deere's vision to innovate and adapt to market conditions.

Deere's vision encompasses a strong presence in global markets, with significant sales in North America, Europe, and Asia. The company reported net sales in its Production and Precision Agriculture segment of $16.529 billion for the first nine months of 2024, a decrease of 17% from $19.826 billion in 2023. This highlights the competitive landscape and the need for Deere to leverage its vision to maintain market leadership.

The integration of technology into Deere's products is crucial for achieving its vision. The company is focused on developing smart farming solutions that utilize data analytics and automation. In the first nine months of 2024, revenues from the Financial Services segment increased by 21% to $4.807 billion compared to $3.987 billion in the same period of 2023, indicating a growing demand for financing solutions that support technological advancements.

Conclusion

Deere & Company's vision for 2024 is characterized by a strong emphasis on innovation, sustainability, and customer success. The company's financial performance, while facing challenges, remains a testament to its commitment to these core principles. Through strategic investments in research and development and a focus on sustainable practices, Deere aims to lead the industry and deliver value to its customers.

Core Values of Deere & Company (DE)

Integrity

Integrity is the cornerstone of Deere & Company's operations, fostering trust and accountability in all interactions. This value is crucial for maintaining long-term relationships with customers, employees, and stakeholders.

In 2024, Deere demonstrated its commitment to integrity through various initiatives, including transparent reporting practices and ethical business conduct. The company adhered to strict compliance regulations, ensuring all transactions and operations were conducted with honesty. For example, in its Q3 financial report, Deere attributed $1,734 million of net income attributable to the company, emphasizing their commitment to accurate financial disclosure.

Innovation

Innovation drives Deere's competitive edge, enabling the company to develop advanced technologies that enhance productivity and sustainability in agriculture and construction.

In 2024, Deere invested approximately $1,664 million in research and development, reflecting its focus on technological advancement. Notable innovations include the integration of automation and digital solutions across product lines, enhancing operational efficiency for customers. This commitment to innovation is evident in the increased engagement with the John Deere Operations Center, which now manages more agricultural acres globally.

Quality

Quality is paramount at Deere & Company, ensuring that products meet the highest standards for performance and durability.

The company maintains rigorous quality control processes throughout its manufacturing operations. In 2024, Deere reported a decrease in warranty expenses, attributed to improved product reliability and customer satisfaction. This focus on quality not only enhances customer loyalty but also positively impacts the company's bottom line, as evidenced by their operating profit figures across segments.

Commitment to Customers

Deere's commitment to customers is reflected in its dedication to providing exceptional service and support, tailored to meet the unique needs of each customer.

In 2024, Deere launched new customer engagement programs aimed at enhancing service delivery and responsiveness. The company's financial services segment reported revenues of $4,807 million, an increase of 21% compared to the previous year, signifying the success of these initiatives in meeting customer financing needs.

Safety and Sustainability

Deere prioritizes safety and sustainability in its operations, striving to minimize environmental impact while ensuring a safe workplace for employees.

In 2024, Deere implemented several sustainability initiatives, including reducing greenhouse gas emissions and enhancing energy efficiency across its facilities. The company's commitment to sustainability is reflected in its operational strategies, which aim to balance profitability with environmental stewardship.