Deere & Company breaks $10 billion in net income for fiscal year 2023
Outlook for 2024 expects softening markets in most regions and sectors
Despite a fourth quarter that saw a slight decline in net sales and revenues as well as net income, Deere & Company ended its fiscal year 2023 with some big gains, including more than $10 billion in net income.
Net worldwide sales and revenues decreased by one percent, to $15.412 billion, in the fourth quarter ending October 29, 2023, compared to the same three month period ending October 30, 2022. Net income in the quarter was $2.369 billion, up five percent year-over-year.
For the full fiscal year, Deere & Company reported $61.251 billion in net sales and revenue, up 16 percent from 2022, and a net income of $10.166 billion, a 43 percent boost over the previous year.
"Deere's fourth-quarter and full-year results can be attributed to the successful execution of our Smart Industrial Operating Model and the value that customers recognize in our industry-leading products and solutions," said John C. May, chairman and chief executive officer. "We must also recognize and credit our dedicated employees, dealers, and suppliers, whose hard work and focus have been instrumental to our overall success."
The Construction & Forestry division reported an 11 percent increase in net sales, reaching $3.742 billion, thanks to price realization and higher shipping volumes, Deere & Company reported.
Looking ahead to 2024, the company's outlook suggests an overall downward trend across all sectors. Overall net income attributable to Deere & Company for fiscal 2024 is forecasted to be in a range of $7.75 billion to $8.25 billion.
"While our end markets will fluctuate, we remain focused on disciplined execution and strategically investing in solutions that drive customer value," May said. "As evidenced by our guidance for 2024, we are demonstrating higher levels of through-cycle structural profitability while making our company more resilient and better equipped for the future."
In Construction & Forestry, the U.S. and Canada are expected to see a downturn of five to 10 percent on construction equipment, and a downswing of up to 5 percent in compact construction equipment. Global forestry is expected to decline slightly, up to 10 percent, while roadbuilding is expected to remain flat.
