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Feb 02, 2020
Deere Q1 2020 Earnings Report
Deere's first-quarter performance reflected early signs of stabilization in the U.S. farm sector, but was impacted by slowing construction activity and costs from a voluntary employee-separation program.
Key Takeaways
Deere & Company reported a 4% increase in net income to $517 million for the first quarter, despite a 4% decrease in worldwide net sales and revenues to $7.631 billion. The U.S. farm sector showed early signs of stabilization, while the construction sector slowed. Full-year earnings forecast remains unchanged.
Net income rose 4% despite a 6% decline in net sales.
U.S. farm sector shows early signs of stabilization.
Construction sector activity slowed, impacting sales and profit.
Full-year earnings forecast unchanged.
Deere
Deere
Deere Revenue by Segment
Revenue by Segment
Production & Precision Ag Revenue
CapyFin.comConstruction & Forestry Revenue
CapyFin.com Forward Guidance
Net income attributable to Deere & Company for fiscal 2020 is forecast to be in a range of $2.7 billion to $3.1 billion.
Positive Outlook
- Encouraged by broad use of precision technologies.
- Company well-positioned to strengthen leadership in precision technologies.
- Proceeding with measures to create a more focused organizational structure.
- Improved efficiencies due to organizational structure changes.
- Company focuses resources and investments on areas that have the most impact on performance.
Challenges Ahead
- Worldwide sales of agriculture and turf equipment are forecast to decline 5 to 10 percent for fiscal-year 2020.
- Negative currency-translation effect of about 1 percent on agriculture and turf equipment sales.
- Industry sales of agricultural equipment in the U.S. and Canada are forecast to be down about 5 percent.
- Worldwide sales of construction and forestry equipment are anticipated to be down 10 to 15 percent for 2020.
- Foreign-currency rates having an unfavorable translation effect of about 1 percent on construction and forestry equipment sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income