John Deere(US:DE)2025-02-13 11:00Financial Performance - Deere & Company reported a net income of $869 million for Q1 2025, a decrease of 50% from $1,751 million in Q1 2024, resulting in earnings per share of $3.19 compared to $6.23[1][5]. - Worldwide net sales and revenues decreased by 30% to $8.508 billion in Q1 2025, down from $12.185 billion in Q1 2024[2][24]. - Net sales for the three months ended January 26, 2025, were $6,809 million, a decrease of 35.5% compared to $10,486 million in the same period of 2024[27]. - Total income after income taxes for the quarter was $868 million, down 50.3% from $1,746 million in the prior year[37]. - Net income attributable to Deere & Company for the first quarter of 2025 was $869 million, down 50.4% from $1,751 million in the first quarter of 2024[27]. - Basic earnings per share decreased to $3.20 in Q1 2025 from $6.25 in Q1 2024, representing a decline of 48.8%[27]. - The company reported a net income attributable to Deere & Company of $639 million, a decline of 58.7% from $1,544 million year-over-year[37]. - Net income for the three months ended January 26, 2025, was $637 million, a decrease of 58.7% compared to $1,541 million in the same period of 2024[42]. Segment Performance - The production and precision agriculture segment saw net sales drop by 37% to $3.067 billion, with operating profit declining by 68% to $338 million[6][24]. - Small agriculture and turf segment net sales decreased by 28% to $1.748 billion, with operating profit down 62% to $124 million[10][24]. - Construction and forestry segment net sales fell by 38% to $1.994 billion, with operating profit down 89% to $65 million[13][24]. Financial Position - Total assets as of January 26, 2025, were $103,119 million, a decrease from $107,320 million as of October 27, 2024[29]. - Total liabilities decreased to $80,555 million as of January 26, 2025, compared to $84,395 million as of October 27, 2024[29]. - Cash and cash equivalents decreased to $6,601 million from $7,324 million, reflecting a reduction in liquidity[40]. - The company’s equity attributable to stockholders was $22,479 million, slightly down from $22,836 million in the previous quarter[40]. - The company’s financing receivables increased to $41,396 million from $44,309 million, showing a shift in financial asset management[40]. Cash Flow and Investments - The company reported a net cash used for operating activities of $1,132 million in Q1 2025, compared to $908 million in Q1 2024[31]. - Cash flows from operating activities showed a net cash outflow of $1,132 million in 2025, compared to an outflow of $908 million in 2024[42]. - Cash flows from investing activities resulted in a net cash outflow of $394 million in 2025, compared to an outflow of $342 million in 2024[42]. - Cash flows from financing activities provided a net cash inflow of $2,567 million in 2025, contrasting with an outflow of $1,399 million in 2024[42]. - Total cash, cash equivalents, and restricted cash at the end of the period was $6,907 million in 2025, up from $5,300 million in 2024[42]. Strategic Outlook - The company forecasts full-year net income for fiscal 2025 to remain in the range of $5.0 billion to $5.5 billion, reflecting resilience in a challenging market[3][4]. - The outlook for the agriculture and turf market indicates a decline of approximately 30% for large agriculture and 10% for small agriculture and turf in the U.S. and Canada[17][18]. - Deere's strategic focus includes optimizing inventory levels of both new and used equipment to navigate uncertain market conditions[3][4]. - The company continues to invest strategically to enhance customer outcomes despite the challenging market environment[4]. - The company plans to continue focusing on market expansion and new product development to drive future growth[37]. Research and Development - Research and development expenses for Q1 2025 were $526 million, slightly down from $533 million in Q1 2024[27]. - Research and development expenses remained stable at $526 million for both periods, indicating a consistent investment in innovation[37]. Dividends and Shareholder Returns - Dividends declared increased to $1.62 per share in Q1 2025 from $1.47 per share in Q1 2024[27]. - The company repurchased common stock amounting to $441 million in 2025, down from $1,328 million in 2024[42].