The American machinery manufacturer John Deere, like its competitors Agco and CNH Industrial, is experiencing a decrease in demand for agricultural machinery. John Deere anticipates a 20 to 25% lower annual revenue.
Unlike its competitors Agco and CNH Industrial, John Deere operates on a non-standard fiscal year. This means that John Deere’s fiscal year ends on October 31, and its half-year results were already published in May.
Half-year results lag by 9%
John Deere’s half-year results (October through April) are 9% behind the same period in 2023. During this period, John Deere sold $27.4 billion worth of equipment and services (approximately €25.1 billion).
The agricultural machinery division and the related precision agriculture division are responsible for $11.4 billion (€10.5 billion) of this revenue. This division is 12% behind 2023.
CNH sees revenue decline by 13%
CNH Industrial achieved a revenue of $10.3 billion (€9.4 billion) in the first six months of 2024. This is 13% less than in the same period last year. The agricultural division of CNH Industrial, also the company’s largest division, is primarily responsible for this revenue decline. The half-year revenue from this division is 17% lower than in 2023 ($7.29 billion/€6.67 billion). The division that includes construction and earth-moving machines reports a 14% decline compared to 2023 ($1.65 billion/€1.51 billion).
CNH Industrial expects the global market for agricultural machinery and construction equipment to continue shrinking in the second half of this year. As a result, the annual revenue is expected to be 15 to 20% lower than in 2023.
Agco sales down 13.7%
In the first six months of 2024, the Agco group sold $6.2 billion (€5.7 billion) worth of machines and services. This is 13.7% less than in the first half of 2023.
The Agco group, owner of brands such as Fendt, Massey Ferguson, and Valtra, achieved a revenue of $6.2 billion (converted to €5.7 billion) in the first six months of this year. This is 13.7% less compared to the same period in 2023. According to Agco, the demand for new tractors in the three largest markets declined by an average of 8%.
Forecast: annual revenue up to 25% lower
Like Agco and CNH Industrial, John Deere also expects fewer machines to be sold in the coming period. John Deere anticipates closing the fiscal year with lower annual revenue. The construction and forestry division is expected to achieve 5 to 10% lower revenue. The annual revenue from the agricultural machinery and precision agriculture division is expected to be 20 to 25% lower, as is the garden and park equipment division.
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