John Deere 25% less agricultural equipment compared to the same quarter of the previous year
Agricultural technology group Deere & Company, with its core brand John Deere, has released figures for the third quarter of its 2024 financial year (July 28, 2024). Sales of the American company are with decline by 17 percent in all business areas worldwide compared to the previous year, the German publication agrarheute cited the data.
The division “large machines and precise agricultural technology’, which actually includes agricultural technology, has been affected even worse.
As the group informed in a press release, sales of large machinery and precision agricultural technology fell in the third quarter due to lower delivery volumes. Compared to the third quarter of the previous year, they are minus 25 percent.
Lower sales were partially offset by better prices, the company said. However, profits fell significantly. Instead of a net profit of US$2.978 billion in Q3 2023, profits fell to US$1.734 billion in Q3 2024. This corresponds to over 58 percent lower profit.
Deere & Company continues to expect a projected net profit of approx $7 billion for the current fiscal year due to cost-cutting steps taken.
Kuhn has almost 30 percent fewer orders
Agricultural machinery manufacturer Kuhn is based in Alsace, France and is part of the Swiss Bucher Industries group. Bucher Industries has now presented its report for the first half of 2024, and with it the data for the Kuhn Group.
The agricultural sector is said to be particularly hard hit by the crisis. Farmers and entrepreneurs bought less machinery, which is reflected in a drop in orders of 28.2 percent.
Bucher Industries cited lower prices for agricultural products, high interest rates and fewer subsidies as reasons for the drop in orders and a weaker willingness of farmers and contractors to invest. This is particularly visible in the agricultural sector, while the sentiment in the dairy and livestock industry is slightly better.
In Europe, there are many unsold machines at dealers
According to Bucher, farm machinery dealers have a large inventory of farm machinery. As a result, fewer new machines will be ordered in all regions. Incoming orders declined, particularly in Brazil and Europe.
Another reason in Europe is the “uncertain political climate” and wet weather.
Kuhn Group’s earnings (earnings before interest, taxes, impairment and amortization of intangible assets) fell with 33.2 percent in the first half of the year. The group generated a profit of 87 million Swiss francs, which corresponds to around 91 million euros.
For the second half of 2024, Kuhn assumes that the situation will not recover due to the large stocks of agricultural machinery dealers in Europe and Brazil.
The number of full-time employees decreased by 7.4 percent compared to the same period last year to 5,728 employees.
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