MOLINE (dpa-AFX) - Deere & Co. (DE) reported Thursday that net profit for the first quarter that nearly halved from last year, due to a double-digit drop in net sales across its three major operating segments amid lower shipment volumes. Earnings per share missed analysts' estimates, but quarterly revenues topped it. The company also maintained its net income guidance for the full-year 2025.
In pre-market activity on the NYSE, Deere shares are trading at $451.10, down $25.46 or 5.34 percent.
'Deere's performance in the first quarter highlights our continued focus on optimizing inventory levels of both new and used equipment amidst the uncertain market conditions our customers are facing,' said John May, chairman and CEO.
For the first quarter, the company reported net income attributable to Deere of $869 million or $3.19 per share, sharply lower than $1.75 million or $6.23 per share in the prior-year quarter.
Worldwide net sales and revenues for the quarter declined 30 percent to $8.51 billion from $12.19 billion in the same quarter last year. Net sales were $6.81 billion, down from $10.49 billion a year ago.
On average, analysts polled expected the company to report earnings of $3.25 per share on revenues of $7.89 billion for the quarter. Analysts' estimates typically exclude special items.
Production & Precision Agriculture segment net sales declined 37 percent to $3.07 billion, and Small Agriculture & Turf segment net sales decreased 28 percent to $1.75 billion from last year, both as a result of lower shipment volumes.
Construction & Forestry segment net sales were down 38 percent to $1.99 billion from last year, due to lower shipment volumes.
Meanwhile, Financial Services segment net income grew 11 percent to $230 million from last year, due to a decreased valuation allowance on assets held for sale of Banco John Deere S.A.
Looking ahead to fiscal 2025, the company continues to project net income attributable to the company in the range of $5.0 billion to $5.5 billion.
'The stability of our net income guidance not only reflects our resilience in a challenging market but also enables our sustained strategic investments to provide better outcomes for our customers,' May added.
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