Deere & Company (NYSE:DE) reported improved profitability in the fourth quarter driven by solid market conditions, differentiated products, and strong execution, but said profits would fall in the coming financial year.
Worldwide sales in the financial fourth quarter fell 1% to $15.41 billion from $15.54 billion while net income rose to $2.37 billion or $8.26 per share, compared with net income of $2.25 billion, or $7.44 per share, in the year prior.
“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 May, chairman and chief executive officer.
But the world’s largest tractor maker forecast a drop in profit next year with slowing equipment demand from farmers starting to weigh.
Net income attributable for financial 2024 is forecast to be in a range of $7.75 billion to $8.25 billion compared to the $10.17 billion reported this year.
Shares fell 6.2% in premarket trading.