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    DEERE & (DE)

    Q4 2023 Earnings Summary

    Reported on Jan 4, 2025
    Pre-Earnings PriceN/ADate unavailable
    Post-Earnings PriceN/ADate unavailable
    Price ChangeN/A
    • John Deere achieved record financial performance in 2023, with operating margins just shy of 22% and generating nearly $12 billion in operating cash flow.
    • The company expects to maintain structural gains in profitability in 2024, delivering nearly 2x the margin and 2.5x the net income compared to the last mid-cycle period, despite a decline in demand.
    • Significant investments in R&D and technology continue, with the company maintaining the highest level of R&D and new product-related CapEx in its history, emphasizing confidence in its strategy and future growth.
    • Deere & Company expects lower demand in fiscal year 2024 due to shifting agricultural market dynamics, leading to a decline in sales, particularly in the large ag equipment segment.
    • The company anticipates a double-digit decrease in combine volumes for 2024, with early orders expected to be down double digits compared to 2023.
    • Elevated interest rates are causing caution in residential and commercial sectors, and industry sales for earthmoving equipment in the U.S. and Canada are expected to be down 5% to 10%, while global forestry markets are forecasted to be down around 10%, potentially impacting Deere's construction and forestry business.

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