Sales in the first quarter totaled $12.19 billion for Deere, down 4% from $12.65 billion in Q1 2023. Construction and forestry sales, however, remained relatively flat at $3.21 billion compared to $3.20 billion in Q1 2023.
The company said price increases in construction equipment were offset by lower shipment volumes. The sector’s operating profit also dropped, by 9%, to $566 million compared to $625 million in Q1 2022. The company cited higher production costs as one factor in the decline.
The 2024 outlook for construction equipment is flat or down 5% sales for the U.S. and Canada. Global roadbuilding, which includes the Wirtgen product group, is also forecast flat for 2024.
Josh Jepsen, SVP/CFO, and Aaron Wetzel, VP, production & precision ag, discuss the results below.
About the Author
Rod Sutton
Sutton has served as the editorial lead of Construction Equipment magazine and ConstructionEquipment.com since 2001.
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