Fiscal 2020 sales and revenue for Deere & Co. were 9 percent below 2019 figures, registering $35.5 billion compared to $39.3 billion last year. Net income was down 15 percent for the year: $2.8 billion versus $3.3 in 2019.
“John Deere delivered another quarter of strong performance and a solid year despite the challenges associated with managing the pandemic,” said John C. May, chair/CEO, in a prepared statement. “In this regard, I would like to pay tribute to the thousands of John Deere employees, dealers and suppliers throughout the world who have helped us safely maintain our operations and serve customers. Because of their contributions, Deere was able to complete a successful year and is positioned to continue providing differentiated solutions and unlocking even greater value for customers.”
Construction and forestry sales for 2020 were $2.5 billion, down 16 percent from the $2.9 billion recorded in 2019. Operating profit fell 25 percent to $196 million compared to $261 million in 2019.
Deere forecasts 2021 net income between $3.6 billion and $4.0 billion, and expects improving conditions in the farm economy and stabilization in construction and forestry markets, according to May.
“Higher crop prices and improved fundamentals are leading to renewed optimism in the agricultural sector and improving demand for farm equipment,” he said. “At the same time, we are looking forward to realizing the benefits of our smart industrial operating strategy, which is designed to accelerate the delivery of solutions that will drive improved profitability and sustainability in our customers’ operations.”
The company anticipates sales of construction and forestry equipment to increase 5 to 10 percent in 2021. The outlook reflects some degree of recovery from the pandemic in construction equipment, continued strength in compact construction due to residential building activity, and expected growth in the roadbuilding sector.
On an industry basis, 2021 North American construction equipment sales are expected to be down about 5 percent with sales of compact equipment up about 5 percent.
Source: Deere & Co.
