Deere Reports Earnings Drop, Implements Workforce Cuts

Deere & Company reported a significant decline in its first-quarter fiscal 2025 earnings, with net income falling 50% year-over-year to $869 million, or $3.19 per share, despite beating analysts' expectations of $3.13 per share. The company's net sales dropped 30% to $8.51 billion, missing the Zacks Consensus Estimate of $7.70 billion, due to reduced shipment volumes and challenging market conditions. The decline affected all major segments, including Production & Precision Agriculture and Construction & Forestry, which experienced sales drops of 37% and 38% respectively. CEO John May attributed these setbacks to uncertain market conditions, and the company has responded by cutting its workforce and reducing production. Despite these challenges, Deere's stock has outperformed the market year-to-date, gaining 12.5% compared to the S&P 500's 2.9% increase. Deere maintained its full-year net income guidance at $5.0 billion to $5.5 billion, reflecting confidence in its ability to navigate the current environment.